Document:

EXHIBIT 10.36

                         CITY OF ST. LOUIS, MISSOURI

                                     and

              PORT AUTHORITY OF THE CITY OF ST. LOUIS, MISSOURI

                                     and

                  PRESIDENT RIVERBOAT CASINO-MISSOURI, INC.

                                     and

                     MERCANTILE BANK NATIONAL ASSOCIATION

                               ---------------

                         RELOCATION FUNDING AGREEMENT

                         Dated as of January 18, 2000

                                  $3,000,000

                     Funding of Relocation Project Costs
                         (Admiral Relocation Project)
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                              TABLE OF CONTENTS

                                                                          PAGE

Parties......................................................................1
Recitals.....................................................................1

                                  ARTICLE I
                                 DEFINITIONS

Section 1.1.   Definitions of Words and Terms................................3

                                  ARTICLE II
                               REPRESENTATIONS

Section 2.1.   Representations and Warranties by the City....................6
Section 2.2.   Representations of the Port Authority.........................7
Section 2.3.   Representations and Warranties by the Company.................7
Section 2.4.   Representations by the Bank...................................8

                                 ARTICLE III
                  USE OF PROCEEDS AND OBLIGATIONS OF COMPANY

Section 3.1.   Agreement to Complete Relocation Project......................8
Section 3.2.   Use of Proceeds of the Loan...................................8
Section 3.3.   Company to Comply with Lease..................................8
Section 3.4.   Construction in General.......................................8
Section 3.5.   Access by Project Engineer................................... 9
Section 3.6.   General Terms and Conditions of Relocation Project........... 9
Section 3.7.   Insurance....................................................10

                                  ARTICLE IV
   AGREEMENT TERM; GAMING REVENUE FUND; AND APPLICATION OF GAMING REVENUES

Section 4.1.   Agreement Term...............................................10
Section 4.2.   Creation of Funds............................................10
Section 4.3.   Allocation of Gaming Tax Revenues............................10

                                  ARTICLE V
                              PAYMENT PROVISIONS

Section 5.1.   Payments.....................................................12
Section 5.2.   Obligations of City and the Port Authority...................12
Section 5.3.   Payments to Constitute Currently Budgeted
               Expenditures of City.........................................12

                                  ARTICLE VI
                           TERMINATION OF AGREEMENT

Section 6.1.   Defeasance...................................................12
Section 6.2.   Company's Right of Termination...............................13
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                                 ARTICLE VII
                             DEFAULT AND REMEDIES

Section 7.1.   Remedies.....................................................13
Section 7.2.   Survival of Obligations......................................13
Section 7.3.   Rights and Remedies Cumulative...............................14
Section 7.4.   Waiver of Breach.............................................14
Section 7.5.   Bank's Exercise of the Bank's Remedies.......................14
Section 7.6.   No Acceleration..............................................14
Section 7.7.   Delay or Omission Not a Waiver...............................14

                                 ARTICLE VIII
                           MISCELLANEOUS PROVISIONS

Section 8.1.   Amendments, Changes and Modifications........................14
Section 8.2.   Instruments of Further Assurance.............................15
Section 8.3.   Payments Due on Saturdays, Sundays and Holidays..............15
Section 8.4.   Severability.................................................15
Section 8.5.   Immunity of Officers, Employees and Members of the
               City and the Company.........................................15
Section 8.6.   Counterparts.................................................15
Section 8.7.   Governing Law................................................15
Section 8.8.   Notices......................................................15
Section 8.9.   Suspension of Mail Service...................................16
Section 8.10.  Execution of Loan............................................17
Section 8.11.  Cooperation in Provision of Financial Information............17
Section 8.12.  Further Authority............................................17

Signatures and Seals........................................................17
Acknowledgments.............................................................18

Exhibit A - Reimbursable Relocation Project Costs
Exhibit B - Description of the Work
Exhibit C - Loan Agreement

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                         RELOCATION FUNDING AGREEMENT

THIS RELOCATION FUNDING AGREEMENT (the "Agreement"), made and entered into as
of January 18, 2000, by and between the CITY OF ST. LOUIS, MISSOURI, a
municipal corporation and political subdivision of the State of Missouri (the
"City"), the PORT AUTHORITY OF THE CITY OF ST. LOUIS, a political subdivision
of the State of Missouri (the "Port Authority"), PRESIDENT RIVERBOAT CASINO-
MISSOURI, INC., St. Louis, Missouri, a corporation organized and existing
under the laws of the State of Missouri (the "Company") and MERCANTILE BANK
NATIONAL ASSOCIATION, a national banking association duly organized and
existing and authorized under the laws of the United States of America (the
"Bank");

                                WITNESSETH:

WHEREAS, President Riverboat Casino-Missouri, Inc., a Missouri corporation
(the "Company"), currently conducts gaming operations on The President Casino
on the Admiral (the "Admiral"), which is currently moored at a location in the
City of St. Louis south of the James B. Eads Bridge pursuant to an existing
lease, as heretofore amended (the "Prior Lease"), entered into by the City
under the authority of Ordinance Nos. 58940 and 62638 of the City of St. Louis
(the "City"); and

WHEREAS, the Company desires to relocate the Admiral to certain leased real
property and mooring rights at a site on the Mississippi River within the Port
District of the City of St. Louis located north of the Martin Luther King
Bridge approximately 1,000 feet north of its current mooring site, and to make
necessary improvements in connection with such relocation, including, without
limitation, the construction of a porte cochere, ramps and affiliated
improvements on the improved public wharf and improved mooring arrangements in
the mooring area (collectively, the "Relocation Project") and in connection
therewith to lease from the City and the Port Authority certain real property
and mooring rights at the new mooring site (collectively, the "Leased
Property"); and

WHEREAS, the City, the Port Authority and the Company desire to enter into a
Lease and Sublease Agreement by and among the City, the Port Authority and the
Company (the "Lease") to provide for the lease of the Leased Property to the
Port Authority and the sublease of the Leased Property from the Port Authority
to the Company, for the funding by the Port Authority of a portion of the
costs of the Relocation Project (the "Relocation Project Costs") in the net
amount of $3,000,000 of which $600,000 shall be provided by the Port Authority
and $2,400,000 from the proceeds of a loan to be obtained by the Port
Authority from Mercantile Bank National Association (the "Bank"), and for the
application of the proceeds of the Loan to fund a portion of the Relocation
Project Costs and the Loan Costs; and

WHEREAS, the parties hereto have determined that the Relocation Project will
increase the safety of the public visiting the Admiral and will provide
economic benefit to the citizens of the City through increased revenues
resulting from increased patronage of the Admiral due to improved passenger
access, and that the enhanced public safety and increased economic benefits to
the citizens of the City resulting from the Relocation Project furthers the
City's and the Port Authority's goals, objectives and policies; and

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WHEREAS, it is anticipated that the Company will incur substantial costs and
expenses associated with the Relocation Project (the "Relocation Project
Costs," as defined herein); and

WHEREAS, the City wishes to provide assistance in funding a portion of the
Relocation Project Costs as an incentive to complete the Relocation Project
and further enhance public safety and increase economic benefits to the
citizens of the City; and

WHEREAS, the City is authorized, pursuant to Article VI, Section 19(a) of the
Constitution of the State of Missouri, to exercise all powers which the
General Assembly of the State of Missouri has authority to confer upon any
city; and

WHEREAS, the City proposes to execute and deliver to the Port Authority this
Agreement to provide funding of a portion of the Relocation Project Costs,
pursuant to Article VI, Section 19(a) of the Constitution of the State of
Missouri and the City's home rule charter (collectively, the "Act"), and
Ordinance No. 64803 adopted by the Board of Aldermen on December 10, 1999 (the
"Ordinance"); and

WHEREAS, in order to provide funds to pay a portion of the Relocation Project
Costs the Port Authority shall enter into a Loan Agreement with the Bank
pursuant to which the Port Authority shall serve as an intermediary for a loan
(the "Loan") to provide funds to pay $3,000,000 of the Relocation Project
Costs and the Loan Costs; and

WHEREAS, in order to secure the payment of the principal of and interest on
the Loan, the Loan Agreement shall provide for a Future Advance Leasehold Deed
of Trust to a Trustee for the Bank covering the Port Authority's interest in
the Leased Property and shall further provide that the Bank may foreclose on
its collateral and may exclude the parties hereto from the Leased Property in
the event of a default by the Port Authority under the Loan Agreement; and

WHEREAS, in order to give the City rights in respect of the Leased Property in
the event of a default under the Loan Agreement and documents referenced
therein the City shall enter into an Option Agreement to Purchase Loan with
the Bank; and

WHEREAS, the obligations of the City and the Port Authority pursuant to this
Agreement shall be a special limited obligation of both the City and the Port
Authority payable only from monies annually appropriated by the Board of
Aldermen of the City from the Gaming Revenue Fund, as herein defined, which
shall be escrowed by the City for such purpose into the Gaming Relocation Fund
and from no other City source; and

WHEREAS, the City, the Port Authority, the Company and the Bank agree that all
funds described herein shall be disbursed and collected as described herein.

NOW, THEREFORE, in consideration of the premises and the mutual
representations, covenants and agreements herein set forth, the City, the Port
Authority, and the Company do hereby covenant and agree as follows:

                                    2

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                                  ARTICLE I
                                 DEFINITIONS

Section 1.1.  Definitions of Words and Terms.  In addition to words and terms
elsewhere defined herein and therein, the following words and terms as used in
this Relocation Funding Agreement, shall have the following meanings, unless
some other meaning is plainly intended:

"Adjusted Gross Receipts" shall have the meaning of such term as contained in
the Gaming Act.

"Admission Tax" means that portion of the admission fee described in Rev.
Stat. Mo. Section 313.820 (1997) from Gaming Operations which is paid to the
City as home dock city by the State from operations of the Company.

"Admission Tax Base" means $3,240,000.

"Agreement" means this Relocation Funding Agreement, as the same may be from
time to time modified, amended or supplemented in writing by the parties
hereto.

"Agreement Term" means the duration of this Relocation Funding Agreement as
specified in Section 4.1 of this Relocation Funding Agreement.

"Approved Plans" means the plans and specifications for the Relocation Project
for which the City and the Port Authority have given written approval.

"Available Proceeds" means the sum of $3,000,000.

"Bank" means "Mercantile Bank National Association"

"Board of Aldermen" means the Board of Aldermen of the City of St. Louis,
Missouri.

"Business Day" means any day other than (a) a Saturday, Sunday or any other
day on which banking institutions in the city in which the principal corporate
trust office of the Bank is located are required or authorized by law to close
or (b) a day on which the New York Stock Exchange is closed.

"City" means the City of St. Louis, Missouri, a municipal corporation and
political subdivision of the State of Missouri.

"Closing Date" means the date of closing of the Loan.

"Collateral" means the property described in the Loan Agreement attached
hereto as Exhibit C.

"Company" means President Riverboat Casino-Missouri, Inc., a Missouri
corporation, and its successors and assigns and any surviving, resulting or
transferee corporation.

"Contractor", whether in singular or plural form, means those persons or
entities performing Work for the Relocation Project, as such terms are defined

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herein.

"Disbursing Agent" means the Bank.

"Eligible Costs" means those costs and expenses to which Available Proceeds in
the Project Fund may be applied, as more specifically defined in Section
2.3(e) hereof.

"Event of Default" means with respect to this Agreement any event or
occurrence as defined in Section 7.1 hereof.

"Fiscal Year" means the fiscal years of the City beginning on July 1 and
ending on June 30 of the following calendar year.

"Future Advance Leasehold Deed of Trust" means the deed of trust from the
Company, as Trustee for the Bank.

"Gaming Act" means the Excursion Gambling Boats Act of the State of Missouri
contained in Sections 313.800 to 313.850 (both inclusive) of the Revised
Statutes of Missouri (1997), as the same may hereafter be amended, pursuant to
which the Admission Tax and the Home Dock City Tax, respectively, are imposed.

"Gaming Operations" means any operations relating to gaming, gambling,
lotteries, gift enterprises and/or games of skill and chance offered or
conducted at or within the City, including, without limitation, the operation
of any slot machines, roulette tables, card games or other gaming devices or
games permitted under the Gaming Act.

"Gaming Relocation Fund" means the Gaming Relocation Fund created pursuant to
Section 4.2 hereof.

"Gaming Revenue Fund" means the Gaming Revenue Fund created pursuant to
Section 4.2 hereof into which the Gaming Revenues are from time to time
deposited in accordance with this Agreement.

"Gaming Revenues" means all revenues and payments received by the City from
the Home Dock City Tax, the Admission Tax and the Rent.

"Home Dock City Tax" means that portion of the tax on Adjusted Gross Receipts
received by the City from the State from operations of the Company as the home
dock city from Gaming Operations, all as defined in Rev. Stat. Mo. Section
313.822(1).

"Home Dock City Tax Base" means $1,240,000.

"Lease" means the Lease and Sublease Agreement dated of even date herewith
between the City, the Company and the Port Authority pursuant to which the
City leased the Leased Property to the Port Authority and the Port Authority
subleased the Leased Property to the Company, or any other agreement pursuant
to which the City or the Port Authority shall lease the Leased Property for
Gaming Operations during the term of this Relocation Funding Agreement.

"Leased Property" means certain real property and certain mooring rights at a

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site on the Mississippi River within the Port District of the City of St.
Louis and the improvements constituting the Relocation Project to be
constructed thereon which was leased by the City to the Port Authority and
subleased to the Company pursuant to the Lease.

"Loan" means the funds provided by the Bank to the Port Authority for the
payment of $2,400,000 of the Relocation Project Costs and the payment of the
Loan Costs which shall be secured by the Collateral and shall bear interest at
the rate of 9.75% per annum.

"Loan Agreement" means the Loan Agreement dated of even date herewith between
the Bank and the Port Authority pursuant to which the Bank will make the Loan
to the Port Authority in the form attached hereto as Exhibit C.

"Loan Costs" means an upfront fee payable to the Bank of 1/2%.

"Mayor" means the Mayor of the City or his/her duly authorized agent.

"Note" means the evidence of indebtedness of the Port Authority to the Bank,
evidencing a loan from the Bank to the Port Authority in the amount of
$2,400,000 which shall bear interest at the rate of 9.75% per annum.

"Ordinance" means that certain Ordinance adopted on December 10, 1999 by the
Board of Aldermen of the City approving the execution and delivery of this
Agreement.

"Person" means any natural person, firm, association, corporation,
partnership, joint stock company, joint venture, trust, unincorporated
organization or firm, a government or any agency or political subdivision
thereof or other public body.

"Port Authority" means the Port Authority of the City of St. Louis, a
political subdivision of the State of Missouri.

"Project Engineer" means the architect and/or engineer designated by the City
and the Port Authority to oversee the Work and review the disbursement
requests.

"Project Fund" means the account established pursuant to Section hereof into
which the Available Proceeds are deposited.

"Relocation Funding Agreement" means this Relocation Funding Agreement dated
as of the date hereof, among the City, the Port Authority and the Company as
from time to time amended in accordance with the provisions of Section 8.1 of
this Agreement.

"Relocation Project" means the site modification and improvements,
construction of mooring anchorages and protective cells, the moving the
Admiral from its current mooring site to the new mooring site and other work
described in Exhibit A hereto.

"Relocation Project Costs" means the sum total of all reasonable or necessary
costs actually incurred in performing the Work and any such costs incidental

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to the implementation of the Relocation Project.

"Rent" means the rent payable to the City and/or the Port Authority pursuant
to the Lease.

"Rent Base" means $1,240,000.

"State" means the State of Missouri.

"Work" means all work and materials necessary to construct the Relocation
Project.

                                  ARTICLE II
                               REPRESENTATIONS

2.1.  Representations and Warranties by the City.  The City represents and
warrants to the Company, the Port Authority and the Bank that:

(a)  The City is a constitutional charter city and political subdivision of
the State of Missouri.  Under the provisions of the Constitution and laws of
the State of Missouri and the City's charter, the City has the lawful power
and authority to enter into the transactions contemplated by this Relocation
Funding Agreement and the Lease and to carry out its obligations hereunder and
thereunder.

(b)  By all necessary action of the Board of Aldermen of the City, the City
has been duly authorized to execute and deliver this Relocation Funding
Agreement, the Lease, and the other documents required to be executed and
delivered in connection with the transactions, contemplated hereby, acting by
and through its duly authorized officers.  This Relocation Funding Agreement
and the Lease are each a legal, valid and binding obligation of the City
enforceable against the City in accordance with its terms (except as
enforcement may be limited by laws relating to bankruptcy, insolvency or
creditor's rights generally).

(c)  THE OBLIGATIONS OF THE CITY, HOWEVER, ARE LIMITED TO THE PROVISIONS OF
THIS RELOCATION FUNDING AGREEMENT AND UNDER NO CIRCUMSTANCES IS THE CITY
FINANCIALLY OBLIGATED EXCEPT AS SPECIFICALLY SET FORTH HEREIN.
Section 2.2.  Representations of the Port Authority.  The Port Authority
represents and warrants to the Company, the City and the Bank as follows:

(a)  The Port Authority is a public corporation duly organized and existing
under the laws of the State of Missouri, and has lawful power and authority to
enter into, execute and deliver the Lease and this Relocation Funding
Agreement and to carry out its obligations thereunder and hereunder.

(b)  By all necessary corporate action of its governing board, the Port
Authority has been duly authorized to execute and deliver the Lease, the Loan
Agreement and this Agreement and the other documents required to be executed
and delivered by it in connection with the transaction contemplated hereby,
acting by and through its duly authorized officers and such documents are each
a legal, valid and binding obligation of the Port Authority, enforceable
against the Port Authority in accordance with its terms (except as enforcement

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may be limited by laws relating to bankruptcy, insolvency or creditor's rights
generally).

(c)  THE OBLIGATIONS OF THE PORT AUTHORITY, HOWEVER ARE LIMITED TO THE
PROVISIONS OF THE DOCUMENTS SET FORTH IN SUBPARAGRAPH (b) ABOVE AND UNDER NO
CIRCUMSTANCES IS THE PORT AUTHORITY FINANCIALLY OBLIGATED EXCEPT AS
SPECIFICALLY SET FORTH HEREIN.

Section 2.3.  Representations and Warranties by the Company.  The Company
represents and warrants to the City, the Port Authority and the Bank as
follows:

(a)  The Company is a corporation organized and existing under the laws of the
State of Missouri. The Company has the power and authority to own, lease and
operate facilities of the type to be constructed, improved or financed with
the proceeds the Loan and to carry on its business as currently conducted.
The Company has all necessary licenses and permits required in order to carry
on its business as currently conducted and has or will obtain all necessary
licenses and permits in connection with the execution and performance of the
Lease and the Relocation Project.

(b)  The Company has lawful power and authority to enter into, execute and
deliver this Relocation Funding Agreement and the Lease and to carry out its
obligations hereunder and thereunder and by all necessary corporate action has
been duly authorized to execute and deliver this Relocation Funding Agreement
and the Lease, acting by and through its duly authorized officers.

(c)  This Relocation Funding Agreement and the Lease have been duly
authorized, executed and delivered by the Company and constitute the valid and
legally binding obligations of the Company enforceable in accordance with
their respective terms (except to the extent that the enforcement thereof may
be limited by laws relating to bankruptcy, insolvency or other similar laws
affecting creditors' rights generally).

(d)  The execution, delivery and performance by the Company of this Relocation
Funding Agreement and the Lease will not violate any provisions of law or any
applicable judgment, order or regulation of any court or of any public or
governmental body, agency or authority and will not conflict with, or result
in the breach of any of the terms and provisions of, or constitute a default
under, any existing law, court or administrative regulation, decree, order or
the Company's Articles of Incorporation or Bylaws or any indenture, deed of
trust or other agreement or instrument to which the Company is a party or by
which the Company or its properties are bound.

(e)  The proceeds of the Loan are to be used only to finance the Relocation
Project Costs and the Loan Costs through the payment thereof or reimbursement
of the Company for payment thereof.

(f)  The Company will dismiss with prejudice President Riverboat Casino-
Missouri v. City of St. Louis, Cause No. 974-03125, currently pending in the
Circuit Court for the City of St. Louis, at its cost.

2.4.  Representations by the Bank.  The Bank represents and warrants to the

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City, the Port Authority and the Company as follows:

(a)  The Bank will disburse funds to pay a portion of the Relocation Project
Costs and Loan Costs in consultation with a disbursement advisor.

(b)  The Bank represents that it recognizes that the sole source of City
payment for the Loan is that portion of the Gaming Revenue Fund identified for
the repayment of the Loan and that the City has no further obligation therefor
whatsoever.

                                 ARTICLE III
                  USE OF PROCEEDS AND OBLIGATIONS OF COMPANY

Section 3.1  Agreement to Complete the Relocation Project.  The Company will
cause the Relocation Project to be accomplished solely on the Leased Property.
The Company further agrees to cause the construction of the Relocation Project
to be diligently and continuously pursued and to be completed with reasonable
dispatch, and to provide (from its own funds if required) all moneys necessary
to complete the Relocation Project.  Neither the City, the Port Authority nor
the Company represents that the proceeds of the Loan will be sufficient to pay
the costs of completing the Relocation Project.  The Company's agreement to
complete the Relocation Project shall be the subject of a guaranty of
completion by President Casinos, Inc., which shall be secured by the deposit
by the Company, of $500,000 with an escrow agent pursuant to an escrow
agreement among the Company, the Bank, the Port Authority, and the escrow
agent.

Section 3.2.  Use of Proceeds of the Loan.  The Port Authority shall disburse
$600,000 to pay Relocation Projects Costs as incurred and shall disburse such
amount before disbursement of the Loan.  Disbursements shall be made by the
Port Authority upon receipt of draw requests and evidence of Work performed,
which is reasonably satisfactory to Port Authority in consultation with a
disbursement advisor.  Then, the Loan shall be disbursed to pay a portion of
the Relocation Project Costs, as incurred.  No disbursements of the Loan shall
be made until necessary approvals and permits required for the Work paid by
the disbursement have been obtained.  The Company shall not be obligated to
incur any costs of the Relocation Project until the Loan has been disbursed in
full.

Section 3.3.  Company to Comply with Lease.  The Company agrees that during
the term of this Relocation Funding Agreement and the Lease it will
continuously operate the Admiral as a revenue producing gaming facility.  The
Company will comply with the provisions of the Lease and will not exercise any
right to terminate the Lease throughout the term of this Relocation Funding
Agreement.

Section 3.4.  Construction in General.  The Company shall with due dispatch
and haste diligently proceed to complete the Relocation Project in a
workmanlike manner, in accordance with the Approved Plans, and free from liens
or claims of liens by any and all Contractors.  The Company agrees that the
Work is set forth in the Approved Plans and hereby confirms and warrants to
the parties hereto that such Approved Plans have been reviewed by qualified
and experienced architects and engineers and comply with the applicable law.

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The Company further agrees that the construction of the improvements to the
Relocation project will not deviate from the Approved Plans.  The Company
further agrees to bear the full cost and expense over and above the Available
Proceeds to complete the Relocation Project and further acknowledges that the
Work will be completed in a good and workmanlike manner and in accordance with
all applicable law.

Section 3.5.  Access by Project Engineer.  The Company shall provide the
Project Engineer with full access to the Leased Premises for the purpose of
inspecting the Work for which disbursement is sought.

Section 3.6.  General Terms and Conditions of Relocation Project.  The
following general terms and conditions shall apply to the Relocation Project
and the Work.

(a)  The Company agrees it will not make or permit any material changes,
variations or additions to the Approved Plans without first obtaining written
consent of the Port Authority, acting by and through its Executive Director,
which consent shall not be unreasonably withheld or delayed, and the Company
will not enter into additional contracts for work with respect to the
Relocation Project beyond that which is included in the Approved Plans without
the written consent of the City and the Port Authority.  Should any such
change be made or constructed without such approval, the Company shall
indemnify the City and the Port Authority, and hold each of them harmless from
all costs thereof.

(b)  The Company agrees that it shall, at no time, permit abandonment or delay
for more than seven (7) consecutive days of the construction of the
improvements to the Relocation Project except for causes beyond its control
and will forthwith remove or discharge any and all Contractors not diligently
proceeding with the assigned Work for reasons within their control.

(c)  The Company agrees that in the event construction ceases without good
cause for more than thirty (30) days, the City and the Port Authority shall
have the right, at their option, to enter into the Leased Property an engage
such persons as may be necessary to complete the Work or to protect such
improvements from depreciation, and all amounts expended for such purposes
shall be borne wholly by the Company which shall indemnify and hold the City
and the Port Authority harmless therefor.

(d)  The Company agrees to comply with all laws, codes, statutes, regulations
and ordinances of all public authorities having jurisdiction over the
Relocation Project including, but not limited to, zoning ordinances,
environmental laws, building codes, access for the handicapped laws,
occupational health and safety laws, equal employment opportunity laws, etc.

(e)  The Company agrees to defend, indemnify and save the City and the Port
Authority, and their respective employees, agents, officers, commissioners and
directors (hereinafter "Releasees") harmless from any and all loses, costs,
damages, expenses and liabilities, including, in the event of litigation,
reasonable attorneys' fees and expenses which they sustain in connection with
the Relocation Project, directly or indirectly, whether relating to personal
injury, death or property damage.

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(f)  The parties hereto agree, acknowledge and affirm that this Relocation
Funding Agreement does not create a partnership, a trust relationship, an
agency relationship or any other legal relationship other than that of
independent contracting parties in accordance with this Relocation Funding
Agreement, enforceable at law or in equity in accordance with the laws of the
State of Missouri.

(g)  Should the Company breach any provision hereof and fail to correct such
breach within seven (7) business days after receiving written notice thereof
from the City and/or the Port Authority (or within a reasonable period if such
breach cannot be cured within said seven (7) business day period and the
Company has commenced to cure such breach within said seven (7) business day
period and diligently pursues such cure to completion, or should the Port
Authority terminate the Lease, the Company shall be in default hereunder, in
which event, at the City's and the Port Authority's option, this Relocation
Funding Agreement shall terminate and the Disbursing Agent shall disburse the
remaining Available Proceeds first to the Bank to reduce the balance due on
the Note and then to the Port Authority to be applied to remedy any damages
accruing to the Port Authority and the City relating to breach of this
Relocation Funding Agreement and the Lease Agreement.  Nothing herein shall in
any way limit or restrict the exercise of the City's and Port Authority's
rights and remedies under the Lease Agreement and/or applicable law.

Section 3.7.  Insurance.  The Company shall ensure that all Contractors
performing Work carry commercial general liability insurance, builder's risk
and worker's compensation insurance in such amounts as are acceptable to the
City and the Port Authority and naming the City and the Port Authority as
additional insureds for such period of time as Contractor is performing Work.

                                  ARTICLE IV
                   AGREEMENT TERM; GAMING REVENUE FUND; AND
                        APPLICATION OF GAMING REVENUES

Section 4.1.  Agreement Term.  This Relocation Funding Agreement shall be
effective from and after the date hereof and shall continue in force and
effect until the principal of and interest on the Loan has been fully paid.
The Company's obligation to complete the Relocation Project shall survive.

Section 4.2.  Creation of Funds.  So as to ensure to the greatest extent
possible a source of funds for repayment of the Loan, there is hereby created
and ordered to be established within the treasury of the City a separate and
distinct trust fund to be known as the Gaming Revenue Fund for the purpose of
setting aside the Gaming Revenues and paying the City's Payments pursuant to
this Agreement.  All moneys deposited in the Gaming Revenue Fund shall be
applied in accordance with the provisions of this Agreement.  The Comptroller
or other financial officer of the City shall keep and maintain adequate
records pertaining to the Gaming Revenue Fund and all disbursements therefrom.
There shall also be established by the Port Authority a separate and distinct
trust fund known as the Gaming Relocation Fund.

Section 4.3.  Allocation of Gaming Tax Revenues.  During the term of this
Agreement, which term ends in any event upon payment in full of the Loan, the
Gaming Revenues received by the City during each Fiscal Year of the City shall

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be deposited in the Gaming Revenue Fund.  Beginning on the first day of the
month following the Effective Date, as defined in the Lease, and on the first
day of each month thereafter, the City shall transfer moneys in the Gaming
Revenue Fund to the Port Authority for deposit in the Gaming Relocation Fund
until the cumulative amounts so transferred during such Fiscal Year equals
$600,000 as follows:

(a)  From and after receipt by the City during each Fiscal Year of Rent equal
to the Rent Base, fifty percent (50%) of any payment of Rent received by the
City shall be immediately deposited in the Gaming Relocation Fund;

(b)  From and after receipt by the City during each Fiscal Year of Admission
Tax revenues equal to the Admission Tax Base, fifty percent (50%) of all
Admission Tax revenues received by the City shall be immediately deposited in
the Gaming Relocation Fund;

(c)  All Home Dock City Tax revenues received by the City during each Fiscal
Year shall be deposited in the Gaming Relocation Fund until the amount of such
deposits from Home Dock City revenues equals $600,000; and

(d)  From and after receipt by the City of Home Dock City Tax revenues equal
to the Home Dock City Tax Base (including such revenues deposited in the
Gaming Relocation Fund pursuant to subparagraph (c) above, fifty percent (50%)
of all Home Dock City Tax revenues received by the City shall be immediately
deposited in the Gaming Relocation Fund.

All moneys deposited by the City in the Gaming Revenue Fund, after making the
transfers required by the City in subparagraphs (a) through (d) above, may be
used by the City for any purpose permitted by law.  All moneys transferred by
the City to the Port Authority for deposit in the Gaming Relocation Fund shall
be dedicated and applied by the Port Authority solely to repayment of the
Loan.

                                  ARTICLE V
                              PAYMENT PROVISIONS

Section 5.1.  Payments.  To provide for the payment of the principal of and
interest on the Loan, the Port Authority shall pay directly to the Bank, on
July 25, 2000, and on the first Business Day of each month thereafter during
the term of this Agreement, all moneys on deposit in the Gaming Relocation
Fund (the "Payments"), as long as the Loan is outstanding and shall pledge the
Collateral to the Bank to secure the payment of the principal of and interest
on the Loan.

Section 5.2.  Obligations of City and the Port Authority.

(a)  The obligations of the Port Authority under this Agreement to make
payments from the Gaming Relocation Fund to pay the Loan during the Agreement
Term on or before the date the same become due, and the obligations of the
City and the Port Authority to perform all of its other obligations, covenants
and agreements hereunder shall, subject to the provision of subsection (b)
hereof, be absolute and unconditional, without notice or demand, and without
abatement, deduction, set-off, counterclaim, recoupment or defense whatsoever,

                                     11
<PAGE> 124
whether now existing or hereafter arising, and irrespective of whether the
Relocation Project shall have been started or completed, or whether the
Company is in default under the Lease or this Agreement, and notwithstanding
any damage to, loss, theft or destruction of the Relocation Project, the
Leased Property, or any part thereof, any failure of consideration, the taking
by eminent domain of title to or of the right of temporary use of all or any
part of the Relocation Project or the Leased Property, legal curtailment of
the Company's use thereof, the eviction or constructive eviction of the
Company, any change in the tax or other laws of the United States of America,
the State of Missouri or any political subdivision thereof, any change in the
Bank's legal organization or status, or any default of the Bank under the Loan
Agreement, and regardless of the invalidity of any action of the Bank, and
regardless of the invalidity of any portion of this Agreement, the Loan
Agreement or the Lease.

(b)  NOTWITHSTANDING ANY PROVISION OR COVENANT CONTAINED IN THIS AGREEMENT,
THE CITY IS NOT OBLIGATED TO BUDGET OR APPROPRIATE MONIES TO THE GAMING
RELOCATION FUND EXCEPT FROM THE GAMING REVENUE FUND OR TO PAY THE LOAN EXCEPT
FROM MONIES FROM THE GAMING RELOCATION FUND TO THE GAMING RELOCATION FUND.
THE CITY SHALL BE UNDER NO OBLIGATION TO LEVY ANY TAXES IN ORDER TO RAISE
REVENUES TO PAY THE LOAN.

(c)  THE DOCUMENTS FOR THE LOAN SHALL CONTAIN THE FOLLOWING PROVISION:

The Borrower shall not be personally liable for the payment of any sums due
hereunder or under the Loan nor for the performance of any obligations of
Borrower hereunder or under the Loan.  No judgment for the repayment of the
liabilities and obligations of Borrower under this Note will be sought or
enforced against Borrower personally or any property of Borrower other than
the Collateral and monies now or hereafter appropriated by the Board of
Aldermen of the City of St. Louis from the Gaming Revenue Fund and designated
for deposit into the Gaming Relocation Fund, to the extent the City shall not
have previously paid such moneys to Bank pursuant to the applicable provisions
of (and as such terms are defined in) this Agreement and any other property of
Borrower furnished or pledged as security under the Loan or under any of the
other agreements in any action to foreclose the Leasehold Deed of Trust or to
otherwise realize upon any other collateral or to collect any amount payable
hereunder or thereunder.
Section 5.3.  Payments to Constitute Currently Budgeted Expenditures of City.
The City and the Port Authority acknowledge and agree that the payments from
the Gaming Revenue Fund hereunder shall constitute currently budgeted
expenditures of the City.

                                  ARTICLE VI
                           TERMINATION OF AGREEMENT

Section 6.1.  Defeasance.  If the City shall pay and discharge or provide for
the payment or prepayment and discharge of the whole amount of the principal
of and interest on the Loan at the time outstanding, or shall make
arrangements satisfactory to the Bank for such payment or prepayment and
discharge, then and in that case all property, rights and interest hereby
assigned or pledged shall revert to the City, and the right, title and
interest of the Bank, as the assignee of the City and the Port Authority,

                                    12
<PAGE> 125
therein shall thereupon cease, terminate and become void; and this Relocation
Funding Agreement, and the covenants of the City contained herein, shall be
discharged and the Port Authority and the Bank, in such case on demand of the
City and at its cost and expense, shall execute and deliver to the City a
proper instrument or proper instruments acknowledging the satisfaction and
termination of this Agreement, and shall assign and transfer or cause to be
assigned or transferred, and shall deliver or cause to be delivered to the
City, all property, including money, then held by the Port Authority or the
Bank other than moneys deposited with the Port Authority or the Bank for the
payment of the principal of or interest on the Loan.

Section 6.2.  Company's Right of Termination.  At any time prior to the
initial disbursement of the amount to be disbursed by the Port Authority
pursuant to Section 3.2, the Company may, by giving written notice to the
City, the Port Authority and the Bank, abandon the Relocation Project and
terminate this Agreement and the Company's obligations hereunder if the
Company determines, in its sole discretion, that the Relocation Project is no
longer economically feasible or desirable.

                                 ARTICLE VII
                             DEFAULT AND REMEDIES

Section 7.1.  Remedies.  If a default by the City, the Company, or the Port
Authority hereunder shall have occurred and be continuing, then the Port
Authority or the Bank may at such party's election, then or at any time
thereafter, and while such default shall continue, take any one or more of the
following actions:

(a)  By mandamus or other suit, action or proceedings at law or in equity to
enforce its rights against the parties hereto and their officials, officers,
agents and employees, and to require and compel duties and obligations
required by the provisions of this Agreement or by the Constitution and laws
of the State of Missouri and the United States of America;

(b)  By suit, action or other proceedings in equity or at law to require the
parties hereto, their officials, officers, agents and employees to account as
if they were the trustees of an express trust;

(c)  By suit, action or other proceedings in equity or at law to enjoin any
acts or things which may be unlawful or in violation of the rights of the Port
Authority or the Bank; and

(d)  By suit, action or other proceedings in equity or at law enforce its
rights against the parties hereto and their officials, officers, agents and
employees with respect to the Collateral.

Section 7.2.  Survival of Obligations.  The City covenants and agrees with the
Port Authority for the benefit of the Bank that the City's obligations under
this Agreement shall survive the cancellation and termination of this
Agreement, for any cause, and that the City shall continue to pay the Payments
and perform all other obligations specified in this Agreement, all at the time
or times provided in this Relocation Funding Agreement; provided, however,
that upon the payment of all Payments required under Article 5.1 hereof, and

                                    13
<PAGE> 126
upon the satisfaction and discharge of the Loan by the Port Authority, the
parties' obligations under this Agreement shall thereupon cease and terminate
in full.

Section 7.3.  Rights and Remedies Cumulative.  The rights and remedies
reserved by the Port Authority and the Bank and the parties hereunder and
those provided by law shall be construed as cumulative and continuing rights.
No one of them shall be exhausted by the exercise thereof on one or more
occasions.  The Port Authority and the Bank and the parties hereto shall each
be entitled to specific performance and injunctive or other equitable relief
for any breach or threatened breach of any of the provisions of this
Agreement, notwithstanding availability of an adequate remedy at law, and each
party hereby waives the right to raise such defense in any proceeding in
equity.

Section 7.4.  Waiver of Breach.  No waiver of any breach of any covenant or
agreement herein contained shall operate as a waiver of any subsequent breach
of the same covenant or agreement or as a waiver of any breach of any other
covenant or agreement, and in case of a breach by any party hereto of any
covenant, agreement or undertaking by such party, the Port Authority or the
Bank may nevertheless accept from such party any payment or payments hereunder
without in any way waiving such party's right to exercise any of its rights
and remedies as provided herein with respect to any such default or defaults
of such party which were in existence at the time when such payment or
payments were accepted by such party.

Section 7.5.  Bank's Exercise of the Bank's Remedies.  The parties hereto
agree that the Bank is a third party beneficiary of this Relocation Funding
Agreement.  Whenever a default hereunder shall have occurred and be
continuing, the Bank may, exercise any or all of the rights of the Port
Authority or the Bank under this Article, upon notice as required.

Section 7.6.  No Acceleration.  Notwithstanding anything herein to the
contrary, the Payments under this Relocation Funding Agreement are not subject
to acceleration upon the occurrence of an event of default hereunder.

Section 7.7.  Delay or Omission Not a Waiver.  No delay or omission of the
Port Authority or the Bank to exercise any right or power accruing upon any
Event of Default shall impair any such right or power, or shall be construed
to be a waiver of any such Event of Default or an acquiescence therein; and
every power and remedy given by this Agreement to the Port Authority or the
Bank may be exercised from time to time and as often as may be deemed
expedient by the Port Authority or the Bank.

                                 ARTICLE VIII
                           MISCELLANEOUS PROVISIONS

Section 8.1.  Amendments, Changes and Modifications.  After the Closing Date
and prior to payment in full of the Loan, this Relocation Funding Agreement,
the Lease and the Loan Agreement may not be amended, changed, modified,
altered or terminated without the written consent of the Bank and the parties
to such agreements.

                                    14
<PAGE> 127
Section 8.2.  Instruments of Further Assurance.  The City covenants that it
will do, execute, acknowledge and deliver, or cause to be done, executed,
acknowledged and delivered, such Agreement, and such further acts,
instruments, financing statements and other documents as the Bank may
reasonably require for the better assuring, pledging and assigning unto the
Bank the property and revenues herein described, to the payment of the
principal of and interest on the Loan.

Section 8.3.  Payments Due on Saturdays, Sundays and Holidays.  In any case
where the day for any Payment due under this Agreement shall be a Saturday, a
Sunday or a day which is not a Business Day, then payment need not be made on
such date but may be made on the next succeeding Business Day with the same
force and effect as if made on the date fixed for payment, and no interest
shall accrue for the period after such date.  In the event Payments due are
not received, the Bank shall give notice to the City of such fact and the City
shall have ten (10) days after receipt of said notice to make the overdue
Payment before the Bank shall declare the City to be in default under this
Relocation Funding Agreement.

Section 8.4.  Severability.  In the event that any provision of this Agreement
shall be held invalid or unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any other provision
hereof.

Section 8.5.  Immunity of Officers, Employees and Members of the City and the
Company.  No recourse shall be had for the payment of the principal of or
interest on the Loan or for any claim based thereon or upon any
representation, obligation, covenant or agreement in this Agreement contained
against any past, present or future officer, member, employee, director,
alderman, official or agent of the City or the Company, or, respectively, of
any successor public or private corporation thereto, as such, either directly
or through the City, the Company, or respectively, any successor public or
private corporation thereto under any rule of law or equity, statute or
constitution or by the enforcement of any assessment or penalty or otherwise,
and all such liability of any such officers, members, employees, councilmen,
officials or agents as such is hereby expressly waived and released as a
condition of and consideration for the execution of this Agreement and the
issuance of the Reimbursement Obligation.

Section 8.6.  Counterparts.  This Agreement is being executed in any number of
counterparts, each of which is an original and all of which are identical.
Each counterpart of this Agreement is to be deemed an original hereof and all
counterparts collectively are to be deemed but one instrument.

Section 8.7.  Governing Law.  It is the intention of the parties hereto that
this Relocation Funding Agreement and the rights and obligations of the
parties hereunder shall be governed by and construed and enforced in
accordance with the laws of the State of Missouri.

Section 8.8.  Notices.  Any notice, demand or other communication required by
this Agreement to be given by either party hereto to the other shall be in
writing and shall be sufficiently given or delivered if dispatched by
certified United States first class mail, postage prepaid, or delivered

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<PAGE> 128
personally,

(i)    In the case of the Company, to:

       President Riverboat Casino-Missouri, Inc.
       802 North First Street
       St. Louis, Missouri 63102
       Attention:  Mr. James A. Zweifel

       with a copy to:

       Thompson Coburn LLP
       One Mercantile Center
       St. Louis, Missouri 63101
       Attention:  Michael Lazaroff, Esq.

(ii)   In the case of the City, to:

       City of St. Louis
       Comptroller
       Room 212 City Hall
       St. Louis, Missouri 63103
       Attention:  Comptroller

       with a copy to:

       City Counselor's Office
       Room 314 City Hall
       St. Louis, Missouri 63103
       Attention:  City Counselor

(iii)  In the case of the Authority, to:

       Port Authority of the City of St. Louis, Missouri
       1015 Locust Street, Suite 1200
       St. Louis, Missouri 63101
       Attention:  Port Director

(iv)   In the case of the Bank, to:

       Mercantile Bank National Association
       One Mercantile Center
       St. Louis, Missouri 63101
       Attention:  Mr. James Lally

or to such other address with respect to either party as that party may, from
time to time, designate in writing and forward to the other as provided in
this Section.  Said notices shall be deemed received on the third (3rd)
business day after deposit in the United States mail or on the actual date
such notice is delivered.

Section 8.9.  Suspension of Mail Service.  If, because of the temporary or
permanent suspension of mail service or for any other reason, it is impossible

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<PAGE> 129
or impractical to mail any notice in the manner herein provided, then such
delivery of notice in lieu thereof as shall be made with the approval of the
parties hereto shall constitute a sufficient notice.

Section 8.10.  Execution of Loan.  The City is hereby authorized to enter into
and the Mayor and Comptroller of the City and/or the President of the Board of
Aldermen and the Register of the City are hereby authorized and directed to
execute and deliver, for and on behalf of and as the act and deed of the City,
such other documents, certificates and instruments as may be necessary or
desirable to carry out and comply with the intent of this Agreement.

Section 8.11.  Cooperation in Provision of Financial Information.  The City
agrees to cooperate with the Bank in connection with the making of the Loan to
the Port Authority and to provide such financial and other information
regarding the City, the Gaming Revenues, this Agreement, the Lease, and the
transactions contemplated hereby, including audited financial statements and
projections of Gaming Revenues, as may be reasonably requested by the Bank or
its counsel.

Section 8.12.  Further Authority.  The City shall, and the officers, aldermen,
officials, agents and employees of the City, the Port Authority and the
Company are hereby authorized and directed to, take such further action, and
execute such other documents, certificates and instruments as may be necessary
or desirable to carry out and comply with the intent of this Agreement, and to
carry out, comply with and perform the respective duties of the City, the Port
Authority and the Company with respect to this Relocation Funding Agreement
and the Loan.

IN WITNESS WHEREOF, the City, the Port Authority, the Bank and the Company
have caused this Relocation Funding Agreement to be executed as of the day and
year first above written.

                                    CITY OF ST. LOUIS, MISSOURI

ATTEST:
                                    By: /s/ Clarence Harmon
                                       ---------------------------------------
/s/ Rita M. Kropf                      Mayor
------------------------------
Register
                                    By:  /s/ Darlene Green
                                       ---------------------------------------
                                       Comptroller

                                    Approved as to form only:

                                         /s/ Thomas J. Ray
                                    ------------------------------------------
                                       City Counselor

                                     17
<PAGE> 130
                                    PORT AUTHORITY OF THE CITY OF ST. LOUIS

ATTEST:
                                    By:  /s/ James W. Suelmann
                                       ---------------------------------------
/s/ Mary Giammaneo                     Chairman
------------------------------
(Assistant) Secretary

                                    PRESIDENT RIVERBOAT CASINO-MISSOURI, INC.

ATTEST:
                                    By: /s/ James A. Zweifel
                                       ---------------------------------------
/s/ Ralph J. Vaclavik                  Executive Vice President
------------------------------
(Assistant) Secretary

                                    MERCANTILE BANK NATIONAL ASSOCIATION

ATTEST:
                                    By: /s/ James B. Lally
/s/ Thomas S. Sherman                  ---------------------------------------
------------------------------         Vice President
Vice President

                                     18
<PAGE> 131

                                  EXHIBIT A

                           RELOCATION PROJECT COSTS

              General Conditions                 $     75,900
              Design                             $    554,151
              Marine Construction                $  1,065,000
              Plaza/Porte Cochere Const.         $  4,250,000
              Ramp/Bridge Construction           $    910,000
              Construction Management            $     70,000
              Contingency                        $     74,949
                                                 ------------
              Total                              $  7,000,000

                                     19
<PAGE> 132

                                  EXHIBIT B

                           DESCRIPTION OF THE WORK

Relocation of the Admiral from its current mooring site to a new mooring site
and construction of site modifications and improvements at the new site
including, but not limited to, construction of a drive-up plaza and porte
cochere and installation of enhanced exterior lighting, construction of
mooring anchorages and protective cells and related equipment and related
professional fees and expenses.

                                     20
<PAGE> 133

                                  EXHIBIT C

                                LOAN AGREEMENT

THIS LOAN AGREEMENT (this "Agreement"), is dated and effective as of the 18th
day of January, 2000, by and between MERCANTILE BANK NATIONAL ASSOCIATION
("Bank"), a national banking association with a place of business at One
Mercantile Center, St. Louis, Missouri  63101, and the Port Authority of the
City of St. Louis ("Borrower"), a political subdivision of the State of
Missouri with its principal place of business at 1015 Locust Street, Suite
1200, St. Louis, Missouri  63101.

WHEREAS, Borrower has requested that Bank loan monies to Borrower in
connection with Borrower's obligations under the Relocation Funding Agreement
and;

WHEREAS, Bank is willing to lend monies to Borrower pursuant hereto.

NOW, THEREFORE, in consideration of any loan or advance or grant of credit
hereafter made by Bank to or for the benefit of Borrower and for good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties agree as follows:

1.  DEFINITIONS AND TERMS

1.1  The following terms and/or phrases shall have the meanings set forth and
shall be applicable to the singular and plural form, giving effect to the
numerical difference; whenever the context so requires, the use of "it" in
reference to Borrower shall mean Borrower as identified at the beginning of
this Agreement:

(A)  "Affiliate":  any Person that, directly or indirectly, through one or
more intermediaries, controls Borrower (a "Controlling Person") or any Person
(other than Borrower or a subsidiary) which is controlled by or is under
common control with a Controlling Person.  As used herein, the term "control"
means possession, directly or indirectly, of the power to direct or cause the
direction of the management or policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

(B)  "Borrower's Liabilities":  all obligations and liabilities of Borrower to
Bank (including, without limitation, all debts, claims and indebtednesses)
whether primary, secondary, direct, contingent, fixed or otherwise,
heretofore, now and/or from time to time hereafter owing, due or payable,
however evidenced, created, incurred, acquired or owing and however arising,
whether under this Agreement, the Note or any Other Agreements, or by
operation of law or otherwise.

(C)  "Borrower's Obligations":  all terms, conditions, warranties,
representations, agreements, undertakings, covenants and provisions (other
than Borrower's Liabilities) to be performed, discharged, kept, observed or
complied with by Borrower pursuant to this Agreement or under any Other
Agreements.

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<PAGE> 134
(D)  "Business Day":  any day other than a Saturday, Sunday or legal holiday
observed by Bank.

(E)  "Charges":  all Federal, State, County, City and/or other governmental
taxes, levies, assessments, charges, claims or encumbrances upon and/or
relating to Borrower's business, Borrower's ownership and/or use of any of its
assets and/or Borrower's income and/or gross receipts.

(F)  "Credit":  the definition ascribed to this term in Section 2.1.

(G)  "Environmental Law":  the definition ascribed to this term in Section
4.1(E).

(H)  "Event of Default":  the definition ascribed to this term in Section 6.1.

(I)  "Gaming Relocation Fund":  as defined in the Relocation Funding
Agreement.

(J)  "Gaming Revenue Fund":  as defined in the Relocation Funding Agreement.

(K)  "Indebtedness":  all obligations and liabilities of Borrower to any
Person other than Bank (including, without limitation, all debts, claims and
indebtednesses) whether primary, secondary, direct, contingent, fixed or
otherwise, heretofore, now and/or from time to time hereafter owing, due or
payable, however evidenced, created, incurred, occurred or owing and howsoever
arising, whether under written or oral agreement, by operation of law, or
otherwise.

(L)  "Leasehold Deed of Trust":  the definition ascribed to this term in
Section 3.1

(M)  "Loans":  the definition ascribed to this term in Section 2.1.

(N)  "Note":  the promissory note in the form attached hereto as Exhibit A to
be executed and delivered by Borrower to Bank in evidence of the Credit (as
defined in Section 2.1).

(O)  "Other Agreements":  all agreements, instruments and documents,
including, without limitation, loan agreements, security agreements,
guaranties, mortgages, deeds of trust, notes, pledges, applications and
agreements for letters of credit, letters of credit, advises of credit,
bankers acceptances, notices, financing statements and all other written
matter heretofore, now and/or from time to time hereafter executed by and/or
on behalf of Borrower and delivered to Bank, or issued by Bank upon the
application and/or other request of, and on behalf of, Borrower.

(P)  "Person":  any individual, sole proprietorship, partnership, joint
venture, trust, unincorporated organization, association, corporation,
institution, entity, party or government (whether national, federal, state,
county, city, municipal or otherwise, including, without limitation, any
instrumentality, division, agency, body or department thereof).

(Q)  "Relocation Funding Agreement":  that certain Relocation Funding

                                     22
<PAGE> 135
Agreement dated as of even date herewith, among The City of St. Louis,
Borrower and President Riverboat Casino - Missouri, Inc.

(R)  "Termination Date":  the date as set forth in Section 7.12.

(S)  "Unmatured Event of Default":  any event or condition which, with the
lapse of time or giving of notice to Borrower or both, would constitute an
Event of Default.

(T)  "Year 2000 Compliant":  with respect to any Person, all software,
embedded microchips and/or other computer and/or processing capabilities
utilized by such Person, and/or included in any software, products, goods
and/or services sold and/or leased by such Person, are able to correctly and
properly recognize, interpret, process, calculate, compare, sequence and
manipulate data and date-sensitive functions on and involving all calendar
dates (including, without limitation, dates in and after the year 2000).

1.2  Except as otherwise defined in this Agreement, all accounting words,
terms and/or phrases used herein shall have the meanings customarily given
them in accordance with generally accepted accounting principles.

2.  CREDIT:  GENERAL TERMS

2.1  Subject to the terms and conditions of this Agreement and the Other
Agreements and provided that an Event of Default or Unmatured Event of Default
does not then exist, Bank agrees to make such loans or advances (individually
a "Loan" and collectively, the "Loans") to Borrower, as Borrower may from time
to time request in accordance with the terms and conditions hereinafter set
forth of up to, but not in excess of, Two Million Four Hundred Thousand
Dollars ($2,400,000), at any time outstanding (the "Credit").  In the event
the outstanding principal balance of the Loans exceeds the limitations set
forth above, Borrower shall immediately and without notice or demand, make the
necessary payments to eliminate such excess.  Advances of proceeds of the Loan
are to be made by Bank in accordance with the written disbursement
instructions of Borrower and are to be made not more frequently than once each
month during the term of the Loan.

2.2  Advances of proceeds of the Loan shall be made only with respect to
reimbursable relocation project costs, as described in Exhibit A to the
Relocation Funding Agreement and all proceeds, upon being so advanced, shall
be held in trust for such uses and purposes and none other.  No part of the
Loan shall be disbursed for advertising or promotion fees or expenses or
overhead and administrative expenses.  Requisitions of Loan proceeds shall
include only amounts actually submitted by or on behalf of Lessee (as defined
below) and its contractors, subcontractors and material suppliers in
connection with the Relocation Project (as such term is defined in the
Relocation Funding Agreement) which amounts have been approved by the
disbursing agent.  No requisition shall include a request for funds not
actually due on account of materials supplied and delivered to the job site or
for work and labor not actually performed.  Advances of proceeds of the Loan
shall not be made (anything herein to the contrary notwithstanding) at any
time Bank believes, in its discretion, that the Relocation Project will not be
completed within a reasonable period of time and in accordance with plans and

                                     23
<PAGE> 136
specifications therefor previously provided to Bank or that the total costs of
the Relocation Project will exceed the total amount allocated thereto by more
than 10% pursuant to such plans and specifications approved by Bank (plus any
equity investments in the Relocation Project made in accordance with the
provisions of this section).  Should Bank notify Borrower of an intention to
cease advances of Loan proceeds on the basis that the total costs of the
Relocation Project will exceed the amount allocated thereto pursuant to the
plans and specifications therefor approved by Lender (plus any equity
investment in the Relocation Project made in accordance with the provisions of
this paragraph), Borrower shall direct Lessee, within fifteen (15) days from
the date of such notice to make such equity investment (or additional equity
investment) in the Relocation Project as is necessary to satisfy Bank that the
relevant provisions of this paragraph have been satisfied, and if Lessee fails
to make such equity investment (or additional equity investment) within such
time, such failure shall be deemed an Event of Default under this Agreement.

Advances hereunder shall not be made (anything herein to the contrary
notwithstanding) during any period (i) that Borrower is not in full compliance
with this Agreement, which requires, without limitation, that no Event of
Default and no event which, with the giving of notice or lapse of time, or
both, would constitute such Event of Default shall have occurred and be
continuing, and no such Event of Default would result from the making of an
advance, (ii) that the representations and warranties as set forth herein
shall not be true and correct in all respects on and as of the date requested
for any advance, or (iii) that Borrower shall not have performed all
applicable covenants and agreements hereunder and shall have satisfied all
applicable conditions hereof on and as of the date requested for an advance.
It is expressly understood and agreed that the making of any advance or any
part thereof when Borrower is not entitled to such advance will not constitute
a waiver of compliance with the terms and conditions enumerated herein.

2.3  All Loans made hereunder and other liabilities of Borrower arising
hereunder shall be paid by Borrower on the Termination Date, unless payable
sooner pursuant to the terms of this Agreement and/or the Note, but may, at
Borrower's election, be repaid in whole or in part any time prior to such date
without premium or penalty unless otherwise stated in the Note.  Amounts paid
by Borrower in respect of the Loan may not be reborrowed.

2.4  All fees, and all interest payable in respect of the Credit, shall be
computed on the basis of a year of 360 days, and charged for the actual number
of days elapsed.  Whenever any payment to be made under this Agreement, the
Note or the Other Agreements shall be due on a non-Business Day, such payment
shall be made on the next succeeding Business Day, and such extension of time
shall be included in the computation of interest due upon the Credit.

2.5  The Loans will be repaid solely from the monies on deposit in the Gaming
Relocation Fund as established by and funded pursuant to the terms of the
Relocation Funding Agreement.  Funds on deposit in the Gaming Relocation Fund
will be pledged to the payment of the Loans.  On July 25, 2000 and on the 25th
day of each month thereafter during the term of the Relocation Funding
Agreement, Borrower shall pay to Bank all moneys in accordance with and
subject to the limitations as set forth in the Note.

                                     24
<PAGE> 137
3.  CONDITIONS PRECEDENT TO DISBURSEMENT

3.1  (A)  The obligation of Bank to make the initial Loan to Borrower under
the Credit is subject to the condition precedent that Bank shall have received
each of the following, duly executed and in form and substance satisfactory to
Bank:

(i)  Duly executed copy of this Agreement;

(ii)  Note, payable to the order of Bank and dated as of the date of the
initial Loan;

(iii)  Secretary's Certificate;

(iv)  Leasehold Deed of Trust (the "Leasehold Deed of Trust") encumbering
Borrower's leasehold interest established pursuant to that certain Lease
Agreement dated of even date herewith among Borrower and The City of St.
Louis, Missouri, as lessors, and President Riverboat Casino Missouri, Inc., as
lessee;

(v)  Leasehold mortgagee policy of title insurance insuring the lien of the
Leasehold Deed of Trust;

(vi)  Escrow Agreement;

(vii)  Guaranty of President Casinos, Inc.;

(viii)  Bank shall have received and approved the final plans and
specifications for the Relocation Project together with all building or
construction permits necessary for completion of the Relocation Project,
copies of the construction contracts, budgets, requirements of the Port
Authority and the City and all related construction documentation;

(ix)  Such other opinions, documents, certificates or approvals as Bank
reasonably may request; and

(x)  Bank shall have received payment of all fees and expenses payable by
President Casino, Inc. and President Riverboat Casino-Missouri, Inc. in
connection with the transactions contemplated by this Agreement and the
related documents.

(B)  The obligation of Bank to make the initial Loan and each subsequent Loan
is further subject to satisfaction of the following conditions precedent:

(i)  Before and after giving effect to such Loan, no Event of Default or
Unmatured Event of Default shall have occurred and be continuing hereunder;
and

(ii)  Before and after giving effect to such Loan, all representations and
warranties of Borrower hereunder and/or under the Other Agreements shall be
true and correct as though made on the date of such Loan.

(iii)  Borrower shall cause all requests for advances to be submitted not more

                                     25
<PAGE> 138
frequently than monthly to Bank.  Bank shall have ten days to process any
request for an advance after it is received, provided the request is in proper
order.  Borrower will utilize the requisition form attached hereto as Exhibit
B (and any other supplemental form required by Bank) and submit supporting
invoices in connection with requests for advances and each requisition shall
be signed by the contractor retained to perform such work, and accompanying
affidavits, in forms required by Bank, including, without limitation, Exhibit
B-1, shall be signed by an authorized officer of President Riverboat Casino-
Missouri, Inc. ("Lessee").  Requisitions will detail the application of the
funds being requested and will specify or refer to the contracts, subcontracts
and/or invoices to which the proceeds of the relevant advance will be applied
and will include copies of invoices from the major subcontractors and
suppliers and a general contractor's affidavit in substantially the form of
Exhibit B-2.  The accompanying affidavit signed and provided by Lessee shall
show amounts previously drawn, amounts being drawn with such requisition and
amounts to be drawn.  Bank may, at its option, withhold disbursements at any
time it is not satisfied that payments for labor and material for the
Relocation Projection are being made from the proceeds of the Loan and that
appropriate receipts and lien waivers have been received for the preceding
advances.

(iv)  Appropriate lien waivers respecting the preceding advance shall have
been submitted to Borrower by all contractors, all subcontractors, all
materialmen and all suppliers evidencing disbursement and receipt of each
advance of the Loan proceeds in accordance with the requisition therefor.
Copies of all such lien waivers together with copies of all paid bills and
applications for payment shall be furnished to Bank on the earlier of (a)
thirty (30) days after the disbursement relative thereto or (b) at the time of
the succeeding request for an advance.

(v)  The leasehold mortgagee policy of title insurance insuring the lien of
the Leasehold Deed of Trust shall be endorsed by the title insurance company
with no exceptions as to mechanics or materialmen's liens or survey matters
and so as to expressly insure each disbursement by Bank in the aggregate of
all such disbursements against exception for any and all filed or unfiled
liens or encumbrances.

(vi)  Lessee shall have certified to Bank that Lessee is proceeding
continuously with the construction and completion of the Relocation Project
and that no defaults or events of default have occurred and are continuing
under any contract or subcontract executed by Lessee in connection therewith.

4.  REPRESENTATIONS AND WARRANTIES

4.1  To induce Bank to enter into this Agreement and to make Loans to
Borrower, Borrower makes the following representations and warranties to Bank,
all of which shall survive the execution of this Agreement and the making of
the initial Loan:

(A)  Borrower is a public corporation duly organized and existing and in good
standing under the laws of the State of Missouri and has all requisite power
and authority, corporate and/or otherwise, to conduct its business and to own
or lease its properties.

                                     26
<PAGE> 139
(B)  The execution, delivery and performance by Borrower of this Agreement and
the Other Agreements are within the powers of Borrower, corporate or
otherwise, have been duly authorized by all necessary corporate action and do
not and will not:  (i) violate any provision of any certificate or articles of
incorporation, by-laws, or other agreements of Borrower or of any law, rule,
regulation, order, writ, judgment, injunction, decree, determination or award
binding upon or applicable to Borrower; (ii) require the consent or approval
of, or filing or registration with, any governmental body, agency or
authority; and/or (iii) result in a breach of or constitute a default under,
or result in the imposition of any lien, charge or encumbrance upon any
property of Borrower.  This Agreement and the Other Agreements constitute
legal, valid and binding obligations of Borrower enforceable against Borrower
in accordance with their terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization and other similar laws of general
application affecting the enforcement of creditors' rights or by general
principles of equity.

(C)  The operations of Borrower comply in all respects with the Comprehensive
Environmental Response, Compensation and Liability Act, any so-called
"Superfund" or "Superlien" law or any other federal, state or local laws,
rules, regulations, orders or decrees (collectively, "Environmental Laws")
relating to, or imposing liabilities or standards of conduct concerning any
hazardous substances, pollutants, contaminants, toxic or dangerous waste,
substance or material defined as such in any Environmental Law.  There are no
actions or proceedings which are pending, or to the knowledge of Borrower
threatened, against Borrower under any Environmental Law.

(D)  Borrower has and at all times hereafter shall have good and marketable
title to all of its assets, real and personal, free and clear of all liens,
security interests, mortgages, claims and/or encumbrances except those granted
in favor of Bank, those referred to in Section 5.1(A) hereof.

(E)  Borrower is not in default with respect to any indenture, loan agreement,
mortgage, deed of trust or similar agreement relating to the borrowing of
monies to which it is a party or by which it is bound.

(F)  Borrower has and is in good standing with respect to all governmental
permits, certificates, consents and franchises necessary to continue the
conduct of business conducted by it and to own or lease and operate its
properties as now owned or leased by it.

(G)  Borrower is not a party to any agreement, instrument or undertaking, or
subject to any other restriction (i) which materially or adversely affects, or
may in the future so affect, the property, financial condition or business
operations of Borrower, or (ii) under or pursuant to which Borrower is or will
be required to place (or under which any other Person may place) a lien upon
any of its properties to secure payment and/or performance of any liability or
obligation, either upon demand or upon the happening of any condition or
event, with or without demand.

(H)  There are no actions or proceedings which are pending or threatened
against Borrower, which (i) relate to the execution, delivery or performance
of this Agreement and/or any of the Other Agreements, or (ii) would cause any

                                     27
<PAGE> 140
material adverse change in the property, financial condition or business
operations of Borrower.

(I)  The proceeds of any Loan shall be used for proper business purposes and
consistently with all applicable laws and statutes.  Borrower is not in the
business of extending credit for the purpose of purchasing or carrying margin
stock (within the meaning of Regulation U issued by the Board of Governors of
the Federal Reserve System), and no proceeds of any Loan shall be used to
purchase or carry any margin stock or to extend credit to others for the
purpose of purchasing or carrying any margin stock.

(J)  No information, exhibit or report furnished by Borrower to Bank in
connection with the negotiation, execution or future performance of this
Agreement contains any false or misleading information or misstatement of any
facts.

(K)  Borrower has (a) undertaken a detailed inventory, review and assessment
of all areas within its business and operations that could be adversely
affected by the failure of Borrower to be Year 2000 Compliant on a timely
basis, (b) developed a detailed plan and timeline for becoming Year 2000
Compliant on a timely basis and (c) to date, implemented such plan in
accordance with such timetable in all material respects.  Borrower reasonably
anticipates that it will be Year 2000 Compliant on a timely basis, except to
the extent such noncompliance could not reasonably be expected to have a
material adverse effect on Borrower or its properties, assets, liabilities,
business, operations, prospects, income or condition (financial or otherwise)
is not aware that any of its key suppliers, vendors or customers will not, on
a timely basis, be Year 2000 Compliant, except to the extent such
noncompliance could not reasonably be expected to have a material adverse
effect on the properties, assets, liabilities, business, operations,
prospects, income or condition (financial or otherwise) of such Person.  For
purposes of this paragraph (K), "key suppliers, vendors and customers" refers
to those suppliers, vendors and customers of Borrower whose business failure
could reasonably be expected to have a material adverse effect on Borrower or
its properties, assets, liabilities, business, operations, prospects, income
or condition (financial or otherwise).

5.  COVENANTS

5.1  So long as any of Borrower's Liabilities shall remain unpaid, Borrower
shall not do any of the following without the prior written consent of Bank:

(A)  Create or permit to be created or allow to exist any mortgage, pledge,
encumbrance or other lien upon or security interest in any property or assets
encumbered by the Leasehold Deed of Trust or held in the Gaming Relocation
Fund.

(B)  Liquidate or dissolve, or merge with or into or consolidate with or into
any other Person, or sell, lease, transfer or otherwise dispose of all or any
substantial part of its property, assets or business (other than sales and
leases made in the ordinary course of business), amend, modify or supplement
Borrower's certificate or articles of incorporation, bylaws or other document
evidencing the existence of Borrower as a legal entity.

                                     28
<PAGE> 141
(C)  Amend or consent to the amendment of the Relocation Funding Agreement.

5.2  So long as any of Borrower's Liabilities shall remain unpaid, Borrower
shall do all of the following or cause the following to be done by third party
sublessee, unless waived in writing by Bank:

(A)  Maintain insurance in such amounts and against such risks as are
customary by public corporations engaged in the same or similar businesses and
similarly situated.  Borrower will cause the property or assets encumbered by
the Leasehold Deed of Trust to be insured, against loss or damage of the kind
customarily insured against by such corporations, unless higher limits or
coverage are reasonably required in writing by Bank, and cause the lessee
under the lease agreement encumbered by the Leasehold Deed of Trust to carry
adequate liability insurance and other insurance of a kind and in an amount
generally carried by corporations engaged in the same or similar businesses
similarly situated, unless higher limits or coverage are reasonably required
in writing by Bank.  UNLESS BORROWER PROVIDES EVIDENCE OF THE INSURANCE
COVERAGE REQUIRED UNDER THIS AGREEMENT AND THE OTHER AGREEMENTS, BANK MAY
PURCHASE INSURANCE AT BORROWER'S EXPENSE TO PROTECT BANK'S INTEREST IN THE
COLLATERAL.  THIS INSURANCE MAY, BUT NEED NOT, PROTECT BORROWER'S INTERESTS.
THE COVERAGE THAT BANK PURCHASES MAY NOT PAY ANY CLAIM THAT BORROWER MAY MAKE
OR ANY CLAIM THAT IS MADE AGAINST BORROWER IN CONNECTION WITH THE COLLATERAL.
BORROWER MAY LATER CANCEL ANY INSURANCE PURCHASED BY BANK, BUT ONLY AFTER
PROVIDING EVIDENCE THAT BORROWER HAS OBTAINED INSURANCE AS REQUIRED BY THIS
AGREEMENT AND THE OTHER TRANSACTION DOCUMENTS.  IF BANK PURCHASES INSURANCE
FOR THE COLLATERAL, BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT
INSURANCE, INCLUDING THE INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES
BANK MAY IMPOSE IN CONNECTION WITH THE PLACEMENT OF INSURANCE, UNTIL THE
EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE.  THE COSTS
OF THE INSURANCE MAY BE ADDED TO THE BORROWER'S LIABILITIES.  THE COSTS OF THE
INSURANCE MAY BE MORE THAN THE COST OF INSURANCE BORROWER MAY BE ABLE TO
OBTAIN ON ITS OWN.

(B)  Within twenty (20) days after each calendar quarter, the Borrower will
deliver a report on the deposits and expenditures for the Gaming Revenue Fund
and Gaming Relocation Fund certified as to accuracy by a authorized
representative from the budget or comptroller's office.

(C)  Permit representatives of Bank to visit and inspect any of the properties
and examine any of the books and records of Borrower at any reasonable time
and as often as reasonably may be desired.

(D)  Possess and maintain all necessary franchises, patents, trademarks,
tradenames, copyrights and licenses to conduct its respective business(es).

(E)  Take any and all actions necessary to assure that Borrower will be Year
2000 Compliant as soon as reasonably practical.  Borrower will be Year 2000
Compliant by December 31, 1999, except to the extent such noncompliance could
not reasonably be expected to have a material adverse effect on the property,
financial condition or business operations of Borrower.  At the request of
Bank, Borrower will from time to time provide Bank with written reports in
form and detail satisfactory to Bank on the status of the efforts of Borrower
to be Year 2000 Compliant.

                                     29
<PAGE> 142
(F)  Cause to be operated on the real property encumbered by the Leasehold
Deed of Trust a revenue producing gaming facility.

6.  DEFAULT

6.1  The occurrence of any one of the following shall constitute a default
("Event of Default") by Borrower under this Agreement:

(A)  If Borrower shall fail to pay any of Borrower's Liabilities, when due and
payable, or declared due and payable;

(B)  If Borrower shall default in the performance or observance of any of
Borrower's Obligations (not constituting an Event of Default under any other
clause of this Section 6.1);

(C)  If any representation, warranty, statement, report or certificate made or
delivered by Borrower, or any of its officers, employees or agents, to Bank is
not true and correct in any material respect when made or deemed made;

(D)  If Borrower shall (i) become insolvent, (ii) not be paying their
respective debts generally as such debts become due, (iii) make an assignment
for the benefit of creditors or cause or suffer any of their respective assets
to come within the possession of any receiver, trustee or custodian, (iv) have
a petition filed by or against any of them under the Bankruptcy Reform Act of
1978, as amended, or any similar law or regulation, (v) have any of their
respective assets attached, seized or levied upon or (vi) otherwise become the
subject of any insolvency or creditor enforcement proceedings;

(E)  If Borrower shall default in the payment, when due, whether by
acceleration or otherwise, of any Indebtedness of Borrower, and such default
is declared and is not cured within the time, if any, specified therefore in
any agreement governing the same, or any event or condition shall occur which
results in the acceleration of the maturity of any Indebtedness of Borrower or
enables the holder thereof to accelerate the maturity of any such
Indebtedness;

(F)  If one or more judgments or decrees shall be entered against Borrower
involving, individually, or in the aggregate, a liability of $10,000.00 or
more and such judgments or decrees shall not have been vacated discharged or
stayed pending appeal within sixty (60) days after the entry thereof;

(G)  If this Agreement or any of the Other Agreements, including, without
limitation, the Note, at any time after their respective execution and
delivery, shall cease to be in full force and effect, shall be declared null
and void, shall be revoked or terminated or shall be subject to any contest by
any Person as to their validity and/or enforceability, for any reason, or if
Borrower shall for any reason deny any further liability to Bank hereunder and
thereunder; or

(H)  The occurrence of any default or Event of Default under any of the Other
Agreements which is not cured within the time, if any, specified in such Other
Agreement.

                                     30
<PAGE> 143
6.2  Upon the occurrence of any Event of Default or upon the occurrence, and
during the continuance of any of the events described in Section 6.1
(notwithstanding Borrower's right to cure same), Bank shall have no further
obligation to, and may then forthwith cease making Loans to or for the benefit
of Borrower under this Agreement and the Other Agreements without any notice
to Borrower.  Upon an Event of Default, without notice by Bank to or demand by
Bank of Borrower, Borrower's Liabilities shall be immediately due and payable.
Bank, in its sole discretion, upon an Event of Default may exercise one or
more of the rights and remedies accruing to Bank under this Agreement or any
of the Other Agreements or the Relocation Funding Agreement upon a default by
Borrower.

6.3  Upon the occurrence of an Event of Default under Section 5.2(F) or upon
the occurrence, and during the continuance of the event described in Section
5.2(F) (notwithstanding Borrower's right to cure same), Borrower shall
cooperate with the City of St. Louis and with Bank in an effort to (a) re-
sublet the premises encumbered by the Leasehold Deed of Trust to an entity
which is licensed to operate a revenue producing gaming facility and covenants
to operate such a facility on the subleasehold premises and (b) re-establish
deposits from the Gaming Revenue Fund to the Gaming Relocation Fund in the
manner and in amounts contemplated by Section 4.3 of the Relocation Funding
Agreement.

7.  MISCELLANEOUS

7.1  Borrower waives the right to direct the application of any and all
payments at any time or times hereafter received by Bank on account of
Borrower's Liabilities and Borrower agrees that Bank shall have the continuing
exclusive right to apply and reapply any and all such payments in such manner
as Bank may deem advisable, notwithstanding any entry by Bank upon any of its
books and records.

7.2  This Agreement and the Other Agreements may not be modified, altered or
amended except by an agreement in writing signed by Borrower and Bank.
Borrower may not sell, assign or transfer this Agreement or the Other
Agreements or any portion thereof, including, without limitation, Borrower's
rights, titles, interests, remedies, powers and/or duties thereunder.
Borrower consents to Bank's grant of participations in or sale, assignment,
transfer or other disposition, at any time or from time to time hereafter, of
this Agreement or the Other Agreements, or any portion thereof, including,
without limitation, Bank's rights, titles, interests, remedies, powers and/or
duties.

7.3  Bank's failure at any time or times hereafter to require strict
performance by Borrower or failure to enforce Bank's rights, under any
provision of this Agreement or the Other Agreements shall not waive, affect or
diminish any right of Bank thereafter to demand strict compliance and
performance therewith or to enforce Bank's rights.  Any suspension or waiver
by Bank of an Event of Default shall not suspend, waive or affect any other
Event of Default, whether the same is prior or subsequent thereto and whether
of the same or of a different type.  None of the undertakings, agreements,
warranties, covenants and representations of Borrower contained in this
Agreement and the Other Agreements, and no Event of Default by Borrower under

                                     31
<PAGE> 144
this Agreement and the Other Agreements, shall be deemed to have been
suspended or waived by Bank unless such suspension or waiver is by an
instrument in writing signed by an officer of Bank and directed to Borrower
specifying such suspension or waiver.

7.4  If any provision of this Agreement or the Other Agreements or the
application thereof is held invalid or unenforceable, the remainder of this
Agreement and the application of such provision to other Persons or
circumstances will not be affected thereby and the provisions of this
Agreement and the Other Agreements shall be severable in any such instance.

7.5  This Agreement and the Other Agreements shall be binding upon and inure
to the benefit of the successors and assigns of Borrower and Bank.  This
provision, however, shall not be deemed to modify Section 7.2 hereof.

7.6  Except as otherwise specifically provided in this Agreement, Borrower
waives any and all notice or demand which Borrower might be entitled to
receive with respect to this Agreement by virtue of any applicable statute or
law, and waives presentment, demand and protest and notice of presentment,
protest, default, dishonor, non-payment, maturity, release, compromise,
settlement, extension or renewal of any or all commercial paper, accounts,
contract rights, documents, instruments, chattel paper and guaranties at any
time held by Bank on which Borrower may in any way be liable and hereby
ratifies and confirms whatever Bank may do in this regard.

7.7  [Reserved]

7.8  This Agreement and the Other Agreements are submitted by Borrower to Bank
(for Bank's acceptance or rejection thereof) at Bank's principal place of
business as an offer by Borrower to borrow monies from Bank and shall not be
binding upon Bank or become effective until and unless accepted by Bank, in
writing, at said place of business.  If so accepted by Bank, this Agreement
and the Other Agreements shall be deemed to have been made at said place of
business.  This Agreement and the Other Agreements shall be governed and
controlled by the internal laws of the State of Missouri as to interpretation,
enforcement, validity, construction, effect and in all other respects, without
reference to principles of choice of law.

7.9  TO INDUCE BANK TO ACCEPT THIS AGREEMENT AND THE OTHER AGREEMENTS,
BORROWER, IRREVOCABLY, AGREES THAT, SUBJECT TO BANK'S SOLE AND ABSOLUTE
ELECTION, ALL ACTIONS OR PROCEEDINGS IN ANY WAY, MANNER OR RESPECT ARISING OUT
OF OR FROM OR RELATED TO THIS AGREEMENT, THE OTHER AGREEMENTS OR THE
COLLATERAL SHALL BE LITIGATED ONLY IN COURTS HAVING SITUS WITHIN THE CITY OF
ST. LOUIS, STATE OF MISSOURI.  BORROWER HEREBY CONSENTS AND SUBMITS TO THE
JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURT LOCATED WITHIN SAID CITY AND
STATE.  BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO TRANSFER OR CHANGE THE
VENUE OF ANY LITIGATION BROUGHT IN ACCORDANCE WITH THIS SECTION.  BORROWER AND
BANK IRREVOCABLY WAIVE THE RIGHT TO TRIAL BY JURY WITH RESPECT TO ANY ACTION
IN WHICH BORROWER AND BANK ARE PARTIES.

7.10  If at any time or times hereafter Bank employs counsel (including
attorneys who are employees of Bank and/or any of its affiliates) (A) for
advice or other representation with respect to this Agreement, the Note or the

                                     32
<PAGE> 145
Other Agreement or the administration of the Credit, (B) to represent Bank in
any litigation, contest, dispute, suit or proceeding or to commence, defend or
intervene or take any other action in or with respect to any such matter, or
(C) to enforce any rights of Bank against Borrower and/or any Guarantor, the
reasonable costs, fees and expenses incurred by Bank in any manner or way with
respect to the foregoing, shall be part of Borrower's Liabilities, payable by
Borrower to Bank on demand.  For purposes of this Agreement "affiliate" of the
Bank shall include but not be limited to Firstar Corporation, a Wisconsin
corporation ("Firstar") and any banking or non-banking subsidiary of Firstar,
whether owned, controlled by, controlling or under common control with Firstar
directly or individually through any subsidiary.  If any other action or suit
is brought by a party hereto against the other party hereunder concerning a
matter arising out of this Agreement, the prevailing party shall be entitled
to reimbursement, on demand, of all costs and expenses of suit, including
attorneys' fees.

7.11  To the extent that Bank receives any payment on account of Borrower's
Liabilities, and any such payment(s) or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside,
subordinated and/or required to be repaid to a trustee, receiver or any other
party under any bankruptcy act, state or federal law, common law or equitable
cause, then, to the extent of such payment(s) received, Borrower's
Liabilities, or part thereof intended to be satisfied shall be revived and
continue in full force and effect, as if such payment(s) had not been received
by Bank and applied on account of Borrower's Liabilities.

7.12  This Agreement shall terminate upon payment in full of all amounts due
and owing under the Note unless the Credit is otherwise terminated pursuant to
the terms of this Agreement.  Borrower may terminate the Credit at any time
upon written notice to Bank and payment in full of the outstanding principal
balance of, and accrued and unpaid interest on, the Loans and all other of
Borrower's Liabilities under this Agreement.  All of Bank's rights and
remedies, the liens and security interest of Bank in the Collateral and all of
Borrower's Liabilities shall survive termination of the Credit extended to
Borrower hereunder until all of the Borrower's Liabilities have been paid in
full.  The termination or cancellation of the Credit shall not affect or
impair the liabilities and obligations of Borrower to Bank or Bank's rights
with respect to any Loans and advances made and other Borrower's Liabilities
incurred prior to such termination or with respect to the Collateral.

7.13  All notices, requests and other communications to any party hereunder
shall be in writing and shall be given to such party at its address set forth
on the signature pages hereof or such other address as such party may
hereafter specify.  Each such notice, request or other communication shall be
effective (i) if given by mail, 72 hours after such communication is deposited
in the mails with first class postage prepaid, addressed as aforesaid or (ii)
if given by any other means, when delivered at the address specified in this
Section.

7.14  ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO
FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR
RENEW SUCH DEBT ARE NOT ENFORCEABLE.  TO PROTECT BORROWER AND BANK FROM
MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH

                                     33
<PAGE> 146
MATTERS ARE CONTAINED IN THIS WRITING WHICH IS THE COMPLETE AND EXCLUSIVE
STATEMENT OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING
TO MODIFY IT.

IN WITNESS WHEREOF, this Agreement has been duly executed as of the day and
year specified at the beginning hereof.

                                    BORROWER:

ATTEST:                             THE PORT AUTHORITY OF THE CITY OF ST.
                                    LOUIS

(Corporate Seal)

/s/ Mary Giammaneo
------------------------------      By:     /s/ James W. Suelmann
Secretary                              ---------------------------------------
                                    Name:   James W. Suelmann
                                         -------------------------------------
                                    Title:  Chairman
                                          ------------------------------------
                                    Address:  1015 Locust Street, Suite 1200
                                              St. Louis, Missouri  63101
                                              Attn:  Nick Nichols
                                                   ---------------------------

                                    BANK:

                                    MERCANTILE BANK NATIONAL ASSOCIATION

                                    By:     /s/ James B. Lally
                                       ---------------------------------------
                                    Name:   James B. Lally
                                         -------------------------------------
                                    Title:  Vice President
                                          ------------------------------------
                                    Address:  One Mercantile Center
                                              St. Louis, Missouri 63101
                                              Attn:  James B. Lally

                                     34
<PAGE> 147
Acknowledged and agreed:

SUBLESSEE:

PRESIDENT RIVERBOAT CASINO-MISSOURI, INC.

By:  /s/ James A. Zweifel
   ----------------------------------

Name: James A. Zweifel
     --------------------------------

Title:  Exec. V.P. & CFO
      -------------------------------

Address:  802 N. 1st Street
          St. Louis, Missouri  63102
          Attn:  James A. Zweifel
               ---------------------

                                     35
<PAGE> 148

                                  EXHIBIT A

                               PROMISSORY NOTE

$2,400,000.00                                           Date: January 18, 2000
                                                           St. Louis, Missouri

FOR VALUE RECEIVED, the undersigned, THE PORT AUTHORITY OF THE CITY OF ST.
LOUIS, a political subdivision of the State of Missouri ("Borrower"), hereby
unconditionally promises to pay to the order of MERCANTILE BANK NATIONAL
ASSOCIATION ("Bank") the principal sum of Two Million Four Hundred Thousand
Dollars ($2,400,000.00), or such lesser sum as may then constitute the
aggregate unpaid principal amount of all Loans made by Bank pursuant to the
Loan Agreement referred to below.  The aggregate principal amount of Loans
which Bank shall be committed to have outstanding under this Note at any one
time shall not exceed Two Million Four Hundred Thousand Dollars
($2,400,000.00), subject to the terms and conditions of this Note and the Loan
Agreement.

Borrower further promises to pay to the order of Bank interest on the unpaid
principal balance from time to time outstanding under this Note prior to
maturity at a rate of Nine and Three Quarters of One Percent (9.75%) per
annum.  Said interest shall be payable monthly on the twenty-fifth (25th) day
of each month commencing January 25, 2000 and at the maturity of this Note,
whether by reason of acceleration or otherwise.

Pursuant to the terms of the Loan Agreement, Borrower shall remit to Bank all
funds on deposit in the Gaming Relocation Fund.  Such payments shall commence
on July 25, 2000, and shall thereafter be payable monthly on the twenty-fifth
day of each month thereafter and at the maturity of this Note, whether by
reason of acceleration or otherwise.  All payments received by Bank shall be
applied first to the payment of accrued and unpaid late fees and the costs and
expenses hereinafter described, next to accrued and unpaid interest hereon,
and the remainder to principal.  At such time during any fiscal year of the
City of St. Louis commencing with fiscal year 2000/2001, as Bank shall have
received Six Hundred Thousand Dollars ($600,000) in the aggregate in payments
by Borrower from the Gaming Relocation Fund for application to amounts payable
hereunder pursuant to the foregoing sentence, accrued but unpaid interest
hereon shall thereafter be capitalized and added to the principal balance of
this Note on the twenty-fifth day of each month during the remainder of such
fiscal year.  Upon commencement of the immediately succeeding fiscal year of
the City of St. Louis, cash interest payments on this Note shall resume in
accordance with the second preceding sentence of this paragraph.  On the
Termination Date (as defined in the Loan Agreement) Borrower shall pay to Bank
an amount equal to the entire unpaid principal balance hereunder together with
all unpaid interest with respect thereto.

After the occurrence of an Event of Default, interest shall be payable on
demand on the outstanding principal balance at a rate equal to four percent
(4%) per annum in excess of the otherwise payable rate.  In addition, if
Borrower fails to make any payment of any principal or interest on this Note
when due, Borrower promises to pay to the order of Bank on demand a late fee
in an amount equal to 5% of each late payment.  Interest shall be computed on
the basis of a year consisting of 360 days and paid for actual days elapsed.

<PAGE> 149
All required payments shall be made in immediately available funds in lawful
money of the United States of America at the office of Bank situated at 721
Locust Street, St. Louis, Missouri 63101 or at such other place as the holder
may designate in writing.  The acceptance by the holder hereof of any
principal or interest due after the date it is due as described above shall
not be held to establish a custom or waive any rights of the holder to enforce
prompt payment of any other principal or interest payments or otherwise.

Bank may record the date and amount of all loans and all payments hereunder in
the records it maintains.  Bank's books and records showing the account
between Bank and Borrower shall be conclusive evidence of the amounts
outstanding under this Note in the absence of manifest error.

This Note is referred to in that certain Loan Agreement dated the date hereof
by and between Borrower and Bank to which reference is made for a statement of
additional terms and conditions, including acceleration, which may affect this
Note.

Borrower has the right to prepay this Note in whole or in part at any time
without penalty or premium, provided:  (1) all billed and unpaid interest
which has not yet been capitalized shall accompany such prepayment; (2) there
is not a default under any of the terms of this Note at the time of
prepayment; and (3) all prepayments shall be credited and applied to the
installments of principal in inverse order of their stated maturity.

Borrower agrees to pay to Bank, upon demand by Bank, all reasonable costs,
charges and expenses (including, without limitation the reasonable fees and
expenses of any attorney [including but not limited to, any attorney employed
by Bank or any affiliate of Bank] retained by Bank) incurred by Bank in
connection with (a) the collection or enforcement of Borrower's liabilities
and obligations under this Note, (b) the collection and enforcement of Bank's
right in and to any "Collateral" (hereinafter defined), and/or (c) any
litigation, contest, dispute or other proceeding (whether instituted by Bank,
Borrower or any other person or entity) in any way relating to Borrower's
liabilities and obligations hereunder and/or to the Collateral. Borrower's
obligations, as aforesaid, shall survive payment of this Note.  For purposes
of this Note, the term "affiliate of Bank" shall mean Firstar Corporation, a
Wisconsin corporation ("Firstar") and any banking or non-banking subsidiary of
Firstar, whether owned or controlled by controlling or under common control
with Firstar directly or indirectly through any subsidiary, and their
respective successors and assigns.

If any other action or suit is brought by a party hereto against the other
party hereunder concerning a matter arising out of this Note, the prevailing
party shall be entitled to reimbursement, on demand, of all costs and expenses
of suit, including attorneys' fees.

Presentment, demand for payment, protest and notice of dishonor and of protest
are hereby severally waived by all parties hereto, whether as maker, endorser
or guarantor to Bank.

The liabilities and obligations of Borrower under this Note shall be secured
by (a) that certain Future Advance Leasehold Deed of Trust of even date

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<PAGE> 150
herewith (the "Deed of Trust") among Borrower, Bank and Tarquad Corporation,
as trustee, and (b) any and all of Bank's security interests, liens or
encumbrances from time to time hereafter granted by Borrower and/or any
endorser or guarantor to Bank, if any (collectively the "Collateral").

If any of the following events ("Events of Default") shall occur:  (a) the
Obligor (which term shall mean the undersigned and each other party primarily
or secondarily liable to Bank on this Note) shall fail to make any payment on
this Note as and when the same shall become due and payable; (b) the Obligor
shall fail to perform or observe any terms, conditions, warranties,
representations, undertakings, covenants and provisions to be performed,
discharged, kept, observed or complied with under any agreement, instrument,
document, loan agreement, security agreement, mortgage deeds of trust or any
other written matter heretofore, now and/or from time to time hereafter
executed by or on behalf of the Obligor and delivered to Bank; (c) any Obligor
shall (i) apply for or consent to the appointment of a receiver, trustee,
custodian or liquidator of itself for of all or a substantial part of its
assets, (ii) be unable, or admit in writing its inability, to pay its debts as
they mature, (iii) make a general assignment for the benefit of creditors,
(iv) be adjudicated a bankrupt or insolvent, (v) file a voluntary petition in
bankruptcy, or seek an arrangement with creditors, or take advantage of any
insolvency law or file an answer admitting the material allegations of a
petition filed against itself in any bankruptcy, reorganization or insolvency
proceedings or (vi) take any action to effectuate any of the foregoing; (d) an
injunction, attachment or judgment for an amount in excess of $100,000 shall
be issued against any of the property or assets of any Obligor; (e) any
Obligor shall become insolvent in either the equity or bankruptcy sense of the
term; (f) any Obligor shall have a judgment entered against it by a court
having jurisdiction in the premises, and such judgment shall not be appealed
in good faith or satisfied by such Obligor within thirty (30) days after the
entry of such judgment for an amount in excess of $100,000; (g) any Obligor
shall fail (and such failure shall not have been cured or waived) to perform
or observe any term, provision or condition of, or any other default or event
of default shall occur under, any agreement, document or instrument evidencing
or securing any outstanding indebtedness of such Obligor for borrowed money
(other than this Note) for an amount in excess of $100,000, if the effect of
such failure or default is to cause or permit such indebtedness to be declared
to be due and payable or otherwise accelerated, or to be required to be
prepaid (other than by a regularly scheduled required prepayment), prior to
the stated maturity thereof; (h) a default or event of default shall occur
under or within the meaning of any agreement, document or instrument
evidencing, securing, guaranteeing the payment of or otherwise relating to
this Note or any such agreement, document or instrument shall cease to be in
full force and effect (provided if the guaranty of this Note shall cease to be
in full force and effect, the remedy hereunder shall be to cease making future
advances under this Note); (i) any guaranty of this Note shall be declared
null and void by a court of competent jurisdiction, or if the validity or
enforceability thereof shall be contested or denied by any party thereto, or
if any party thereto shall deny that it has any further liability or
obligation thereunder or if any party thereto shall fail to comply with or
observe any of the terms, provisions or conditions contained in said guaranty
(provided that the only remedy for an event of default under (i) hereunder
shall be to cease making future advances under this Note); (j) any material

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<PAGE> 151
change in the ownership of any Obligor; (k) any Obligor, without the prior
written consent of Bank, becomes a party to any reorganization, merger or
consolidation; (l) death of any Obligor who is a natural person or of any
partner of any Obligor which is a partnership; (m) sale, transfer, assignment
or other conveyance of any real property which is Collateral for this Note
without the prior written consent of Bank; or (n) any Obligor shall be
declared by Bank to be in default on, or pursuant to the terms of, (i) any
other future obligation to Bank, including, without limitation, any loan, line
of credit, revolving credit, guaranty or letter of credit reimbursement
obligation, or (ii) any other present or future agreement purporting to convey
to Bank a lien or encumbrance upon, or a security interest in, any of the
property or assets of such Obligor; then, and in each such event, the holder
of this Note may, at its option, declare the entire outstanding principal
amount of and all billed/due and unpaid interest on this Note and all other
amounts payable by the Borrower hereunder to be immediately due and payable,
whereupon all of the unpaid principal amount, billed/due interest and all such
other amounts shall become and be immediately due and payable, without
presentment, demand, protest or further notice of any kind, all of which are
hereby expressly waived by the Borrower, and the holder of this Note may
exercise any and all other rights and remedies which it may have under any
other agreement, document or instrument evidencing, securing or guaranteeing
the payment of this Note or under applicable law.

To the extent that Bank receives any payment on account of Borrower's
liabilities and any such payment(s) or any part thereof is subsequently
invalidated, declared to be fraudulent or preferential, set aside,
subordinated and/or required to be repaid to a trustee, receiver or any other
party under any bankruptcy act, state or Federal law, common law or equitable
cause, then, to the extent of such payment(s) received, Borrower's liabilities
or part thereof intended to be satisfied and any and all liens, security
interests, mortgages and/or other encumbrances upon or pertaining to any
Collateral of Borrower and theretofore created and/or existing in favor of
Bank as security for the payment of such Borrower's liabilities shall be
revived and continue in full force and effect, as if such payment(s) had not
been received by Bank and applied on account of Borrower's liabilities.

Except as set forth in this paragraph, Borrower shall not be personally liable
for the payment of any sums due hereunder or under the Loan Agreement nor for
the performance of any obligations of Borrower hereunder or under the Loan
Agreement.  No judgment for the repayment of the liabilities and obligations
of Borrower under this Note will be sought or enforced against Borrower
personally or any property of Borrower other than the Collateral and moneys
now or hereafter appropriated by the Board of Aldermen of the City of St.
Louis from the Gaming Revenue Fund and designated for deposit into the Gaming
Relocation Fund, to the extent the City shall not have previously paid such
moneys to Bank pursuant to the applicable provisions of (and as such terms are
defined in) the Relocation Funding Agreement and any other property of
Borrower furnished or pledged as security under the Loan Agreement or under
any of the Other Agreements (as defined in the Loan Agreement) in any action
to foreclose the Deed of Trust or to otherwise realize upon any other
Collateral or to collect any amount payable hereunder or thereunder; provided
however, that:

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<PAGE> 152
(a)  Nothing herein contained shall be construed as prohibiting Bank from
exercising any and all remedies which the Loan Agreement or the Other
Agreements permit, including the right to bring actions or proceedings against
Borrower and to enter a judgment against Borrower, or to obtain injunctive or
other equitable relief against Borrower in order to prevent a breach of the
Loan Agreement or the Other Agreements, so long as the exercise of any remedy
does not extend to execution against or recovery out of the property of
Borrower other than the Collateral, or, in the case of specific performance or
other injunctive relief, does not require the expenditure of money except out
of the Collateral;

(b)  Borrower shall be personally liable for:  (i) the commission of fraud or
any material misrepresentation made in connection with the loan evidenced by
this Note; (ii) misappropriation or misapplication of funds associated with
the Collateral or failure to apply funds in accordance with the provisions of
the Loan Agreement or the Other Agreements, including, but not limited to, (w)
lease security deposits and prepaid rents, (x) casualty insurance proceeds and
condemnation awards, (y) amounts collected by Borrower in respect of
judgments, settlements or bankruptcy claims for unpaid rent, and (z) gross
revenues from the Collateral not applied to payment of the expenses of the
Collateral, including, without limitation, real estate taxes, debt service and
other expenditures required by the Loan Agreement and the Other Agreements;
(iii) loss in connection with the Collateral not reimbursed by insurance
resulting from (x) failure to have in effect insurance policies required by
the Loan Agreement or the Other Agreements, (y) the deductible provisions of
any required policy or (z) the successful assertion of any defense or offset
by an insurer under any required policy based on an act or omission by
Borrower or any of its agents, successors or assigns, including successors in
interest; and (iv) the commission of waste in connection with the Collateral.

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM
ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT
ARE NOT ENFORCEABLE.  TO PROTECT BORROWER AND BANK FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS ARE CONTAINED IN
THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT
BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

                                   THE PORT AUTHORITY OF THE CITY OF ST. LOUIS

                                   By: /s/ James W. Suelmann
                                      ----------------------------------------
                                   Print Name:  James W. Suelmann
                                              --------------------------------
                                   Title:  Chairman
                                         -------------------------------------
                                   Address:  1015 Locust Street,
                                             Suite 1200
                                             St. Louis, Missouri 63101
                                             Attn:  Nick Nichols
                                                  ----------------------------

                                      5EXHIBIT 10.36.1

                         LEASE AND SUBLEASE AGREEMENT

                                    among

                       THE CITY OF ST. LOUIS, MISSOURI
                                   (LESSOR)

                                     and

                            THE PORT AUTHORITY OF
                            THE CITY OF ST. LOUIS
                              (LESSEE/SUBLESSOR)

                                     and

                  PRESIDENT RIVERBOAT CASINO-MISSOURI, INC.
                                 (SUBLESSEE)

                      EFFECTIVE DATE:  JANUARY 18, 2000

<PAGE> 154
                              TABLE OF CONTENTS

                                                                          Page
ARTICLE I            DEFINITION OF TERMS.....................................2
     Section 1.1     Act.....................................................2
     Section 1.2     Additional Rent.........................................2
     Section 1.3     Adjusted Gross Receipts.................................2
     Section 1.4     Affiliate...............................................2
     Section 1.5     Agreement...............................................3
     Section 1.6     Ancillary Facilities....................................3
     Section 1.7     Base Rent...............................................3
     Section 1.8     Books and Records.......................................3
     Section 1.9     Casino Project..........................................3
     Section 1.10    Casino Opening Date.....................................3
     Section 1.11    City....................................................3
     Section 1.12    Commission (or Gaming Commission).......................3
     Section 1.13    Debt....................................................3
     Section 1.14    Effective Date..........................................3
     Section 1.15    Environmental Laws......................................4
     Section 1.16    Gaming Authorities......................................4
     Section 1.17    Gaming License..........................................4
     Section 1.18    Gaming Operations.......................................4
     Section 1.19    Gaming Rent.............................................4
     Section 1.20    Gaming Vessel(s)........................................4
     Section 1.21    Governmental Authorities................................5
     Section 1.22    Improvements............................................5
     Section 1.23    Head Tax................................................5
     Section 1.24    Home Dock City Public Safety Fund.......................5
     Section 1.25    Lease Term..............................................5
     Section 1.26    Lease Year..............................................5
     Section 1.27    President...............................................5
     Section 1.28    President's Leasehold Interests.........................5
     Section 1.29    Levee...................................................5
     Section 1.30    Mooring Area............................................5
     Section 1.31    Mooring Rights..........................................6
     Section 1.32    Patrons.................................................6
     Section 1.33    Person..................................................6
     Section 1.34    Port Authority..........................................6
     Section 1.35    Port Commission.........................................6
     Section 1.36    Project.................................................6
     Section 1.38    Relocation Funding Agreement............................6
     Section 1.38    Unavoidable Delay.......................................6

ARTICLE II           LEASED RIGHTS...........................................7
     Section 2.1     Unsubordinated Lease and Sublease.......................7
     Section 2.2     Reserved Easements......................................7

ARTICLE III          TERM OF LEASE...........................................7
     Section 3.1     Term of Lease and Sublease of Levee and
                     Mooring Area............................................7
     Section 3.2     President Termination Right.............................7

ARTICLE IV           RENT, ADDITIONAL RENT AND OTHER CONSIDERATION...........8
     Section 4.1     Base Rent...............................................8
     Section 4.2     Percentage Rent.........................................9
<PAGE> 155
     Section 4.3     Delinquent Rent........................................10
     Section 4.4     Net Lease..............................................10
     Section 4.5     Pro-rated Payments.....................................10
     Section 4.6     Casino Project Development Costs and Repayment.........10

ARTICLE V            LICENSING..............................................10
     Section 5.1     Gaming License.........................................10

ARTICLE VI           OPERATIONAL COVENANTS REGARDING PROJECT................11
     Section 6.1     Light Standards........................................12
     Section 6.2     Curb Cut...............................................12
     Section 6.3     Trash and Garbage Disposal.............................12
     Section 6.4     Marine Survey..........................................12

ARTICLE VII          REPRESENTATIONS AND WARRANTIES OF CITY
                     AND PORT AUTHORITY.....................................12
     Section 7.1     Representations and Warranties of the City
                     and Port Authority.....................................12

ARTICLE VIII         REPRESENTATIONS AND WARRANTIES OF PRESIDENT............13
     Section 8.1     Representations and Warranties of President............13

ARTICLE IX           USE OF MOORING AREA AND LEVEE..........................14
     Section 9.1     Use of Mooring Area....................................14
     Section 9.2     Use of Levee...........................................14
     Section 9.3     Removal................................................14
     Section 9.4     Nondiscrimination......................................14

ARTICLE X            CONDITION AND WARRANTIES OF TITLE......................15
     Section 10.1    Condition of the Mooring Area..........................15

ARTICLE XI           SUBLETTING, ASSIGNMENT AND TRANSFER....................16
     Section 11.1    Assignment or Subletting...............................16
     Section 11.2    Estoppel Certificates..................................16
     Section 11.3    Encumbrance............................................17

ARTICLE XII          ENVIRONMENTAL..........................................17
     Section 12.1    Environmental Obligations..............................17
     Section 12.2    Underground Storage Tanks..............................18
     Section 12.3    Environmental Authorization............................18
     Section 12.4    Termination............................................18
     Section 12.5    Compliance.............................................19

ARTICLE XIII         IMPOSITIONS............................................19
     Section 13.1    Taxes and Impositions..................................19

ARTICLE XIV          INSURANCE..............................................19
     Section 14.1    Insurance..............................................20
     Section 14.2    Form of Insurance and Insurers.........................20
     Section 14.3    Cancellation of or Failure to Obtain Insurance.........20
     Section 14.4    Delivery of Insurance Policies.........................21

<PAGE> 156
ARTICLE XV           INDEMNIFICATION........................................21
     Section 15.1    Indemnification........................................21
     Section 15.2    Environmental Indemnity................................21

ARTICLE XVI          EVENT OF DEFAULT.......................................22
     Section 16.1    Event of Default.......................................22
     Section 16.2    Remedies in the Event of Default.......................23

ARTICLE XVII         HOLDING OVER...........................................28
     Section 17.1    Holding Over...........................................28

ARTICLE XVIII        SURRENDER OF PREMISES..................................28
     Section 18.1    Surrender of Premises..................................28
     Section 18.2    Survival of President's Obligations....................29

ARTICLE XIX          TERMINATION OF 1983 LEASE..............................29
     Section 19.1    Termination............................................29

ARTICLE XX           MISCELLANEOUS PROVISIONS...............................29
     Section 20.1    Coast Guard Certificate................................29
     Section 20.2    Mooring of Vessels.....................................29
     Section 20.3    Auxiliary Craft........................................29
     Section 20.4    Notices................................................30
     Section 20.5    Entire Agreement.......................................31
     Section 20.6    Survival of Covenants..................................31
     Section 20.7    Multiple Counterparts..................................31
     Section 20.8    Binding Effect.........................................31
     Section 20.9    Future Acts............................................31
     Section 20.10   Effective Date of Agreement............................31
     Section 20.11   Time of the Essence....................................31
     Section 20.12   Attorneys' Fees........................................31
     Section 20.13   Venue and Jurisdiction.................................32
     Section 20.14   Authorization and Capacity.............................32
     Section 20.15   Non-Severability.......................................32
     Section 20.16   Non-Waiver.............................................32
     Section 20.17   Governing Law..........................................33
     Section 20.18   Memorandum of Lease....................................33
     Section 20.19   Perpetuities Savings Clause............................33
     Section 20.20   Modification for Municipal Purposes....................33
     Section 20.21   Consent to Leasehold Deed of Trust.....................34

     Exhibit 1 - Percentage Rent
     Exhibit 2 - Levee Description
     Exhibit 3 - Mooring Area Description
     Exhibit 4 - Site Plan Showing Proposed Improvements
<PAGE> 157
                         LEASE AND SUBLEASE AGREEMENT

THIS LEASE AND SUBLEASE AGREEMENT (herein referred to as this "Agreement") is
made and entered into this 18th day of January, 2000 among THE CITY OF ST.
LOUIS, a municipal corporation of the State of Missouri (the "City") through
its Mayor and Comptroller, THE PORT AUTHORITY OF THE CITY OF ST. LOUIS, a
political subdivision of the State of Missouri (the "Port Authority"), and
PRESIDENT RIVERBOAT CASINO-MISSOURI, INC., a Missouri corporation
("President");

                             W I T N E S S E T H:

WHEREAS, President has leased from the City certain mooring rights at a site
on the Mississippi River within the Port District of the City of St. Louis,
and is currently licensed by the Missouri Gaming Commission (the "Commission"
or the "Gaming Commission") to conduct Gaming Operations (as hereinafter
defined) on The President Casino on the Admiral (the "Admiral"), a floating
facility moored at that site; and

WHEREAS, President heretofore submitted a proposal to the Port Authority
whereby it would relocate the Admiral from its current mooring site to a
mooring site of 800 linear feet between the Martin Luther King Bridge and the
south end of the flood wall north of the Martin Luther King Bridge (the
"Mooring Area", as hereinafter defined), and would thereupon develop,
construct and operate a Casino Project (as hereinafter defined) including
riverboat gaming, a porte cochere and a mooring cell (collectively referred to
as the "Casino Project" and hereinafter defined); and

WHEREAS, the parties hereto intend that this Agreement shall provide for an
improved and more competitive Casino Project for the benefit of President, the
City and the Port Authority; and

WHEREAS, President has obtained the approval of the Gaming Commission to
implement and effect the relocation of the Admiral, subject to certain
conditions; and

WHEREAS, the Port Authority and the City have further determined that the
lease of the City's Mooring Rights as hereinafter defined, at the Levee and
Mooring Area for gaming operations in the riverfront area will provide
economic benefits to the citizens of the City of St. Louis through expansion
of the job base, increased revenues, increased tourism and expanded economic
activity; and

WHEREAS, the Port Authority, the City and President desire to enter into this
Lease and Sublease Agreement, pursuant to which the City shall let unto the
Port Authority and the Port Authority shall lease, take and hire from the City
the Mooring Rights within the Mooring Area and Levee and the Port Authority
shall sublet unto President, and President shall sublease, take and hire from
the Port Authority the Mooring Rights within the Mooring Area and Levee, all
subject to the provisions hereinafter set forth and for the terms, the rent,
and upon the remaining conditions set forth herein; and

WHEREAS, the Port Authority, the City and President desire that the Casino
Project be completed, including, but not limited to, those features thereof
which enhance the public safety of visitors to the Admiral; and

<PAGE> 158
WHEREAS, the Port Authority, the City and President agree to the method of
financing certain of the costs of the relocation and the Casino Project;

NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto covenant
and agree as follows:

                                  ARTICLE I
                             DEFINITION OF TERMS

For purposes of this Agreement, the following terms, in addition to the terms
defined elsewhere in this Agreement, shall have the meanings set forth below
when initially capitalized herein:

Section 1.1  Act - means the Excursion Gambling Boats Act of the State of
Missouri contained in Sections 313.800 to 313.850 (both inclusive) of the
Revised Statutes of Missouri (1998), as the same may hereafter be amended.

Section 1.2  Additional Rent - means any and all rent to be paid by President,
other than the Base Rent, including rent which is based on a percentage of
Adjusted Gross Receipts as provided in Section 4.2 hereof.

Section 1.3  Adjusted Gross Receipts - shall have the meaning of such term as
contained in the Act as in effect on the Effective Date without regard to any
subsequent amendments thereto.

Section 1.4  Affiliate - means, as to any Person, any other Person which,
directly or indirectly, is controlled by, under common control with, or
controls such Person.  The term "control" for these purposes means the
ability, whether by direct or indirect ownership of shares or other equity
interests, by contract or otherwise, to elect a majority of the directors of a
corporation, to elect a majority of the managers of a limited liability
company, to select a managing partner of a partnership, or otherwise to
select, or have the power to remove and then select, a majority of those
persons exercising governing authority over an entity, and, in the case of a
limited partnership, shall mean the sole general partner thereof, all of the
general partners thereof which have or share management control or authority,
or the managing general partner or managing general partners thereof, as
appropriate (and in any event shall mean the ownership and control [that is,
the right to vote] fifty percent (50%) or more of the residual equity
interests in an entity).  The term "Affiliate" shall also mean and include (i)
a trust of which the Person in question, or other applicable Person, or a
direct or indirect shareholder of any such Person, is a trustee, or which has
as its principal income or residual beneficiaries, such Person, or any direct
or indirect shareholder of such Person, or members of the immediate family of
such Person or such direct or indirect shareholder, and (ii) any members of
such Person's immediate family, or a member of the immediate family of any
direct or indirect shareholder of such Person.  For purposes hereof, shares or
other ownership interests held by a trust shall be deemed to be owned pro rata
by the income and residuary beneficiaries of such trust.  Further, the members
of the immediate family of any Person shall include all collateral relatives
of such Person having a common linear ancestor with such Person, and the

                                      2
<PAGE> 159
spouse or any former spouse of such Person or any of such collateral
relatives, and shall include both natural and adopted relatives.

Section 1.5  Agreement - means this Lease and Sublease Agreement (together
with all Exhibits, attachments, and appendices referenced herein) by and
between the City, the Port Authority and President, as the same may be
amended, modified, restated, or supplemented from time to time.

Section 1.6  Ancillary Facilities - means the improvements, fixtures,
furniture, buildings, appurtenances, restaurants, entertainment facilities,
bars, lounges, offices, equipment, ramps, structures, porte cochere, mooring
cell,  and facilities of any kind or nature which are located within the
Mooring Area and Levee and which are, have been or will be constructed or
operated as part of, in connection with, or adjacent to the Mooring Area and
Levee, respectively, other than the Gaming Vessel(s).

Section 1.7  Base Rent - means the amount of rent to be paid by President per
linear foot of Mooring Area and per square foot of Levee, as adjusted from
time to time, as mandated by Ordinance No. 57933 of the City of St. Louis.

Section 1.8  Books and Records - means the internal control standards adopted
by President and the records required thereby, as well as all general ledgers,
accounts receivable, accounts payable, invoices, payroll records, expense
records, income records, all revenue records, and any other accounting or
financial document or record relating to or concerning the business operations
of President related to the gaming operations conducted as part of the Casino
Project.  Books and Records shall not include any information President is
required by law, or by applicable provisions of any collective bargaining
agreement, not to disclose.

Section 1.9  Casino Project - means the Gaming Vessel(s), including but not
limited to the Admiral; the Ancillary Facilities related to the Mooring Area
and Levee; and the furniture, fixtures and equipment to be constructed and/or
installed by President at the Mooring Area and Levee pursuant to the terms and
conditions of this Agreement.

Section 1.10  Casino Opening Date - means the first day on which the Gaming
Vessel(s) is open for business to the public in the Mooring Area.

Section 1.11  City - means the City of St. Louis, a political subdivision of
the State of Missouri, whose City Hall is located at 1201 Market Street, St.
Louis, Missouri  63103.

Section 1.12  Commission (or Gaming Commission) - means the Missouri Gaming
Commission created pursuant to Section 313.004 of the Revised Statutes of
Missouri (1994).

Section 1.13  Debt - means the obligation incurred in connection with the
construction of the Casino Project which will be repaid as set forth in the
Relocation Funding Agreement.

Section 1.14  Effective Date - means the date on which this Agreement, with
all Exhibits, Appendices and Attachments, is fully executed by the parties

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hereto, and all changes to the printed portion hereof initialed by all of the
parties.

Section 1.15  Environmental Laws - means any applicable laws pertaining to
health or the environment including, without limitation, the Comprehensive
Environmental Response Compensation and Liability Act of 1980, as amended by
the Superfund Amendments and Reauthorization Act of 1986, as hereafter amended
("CERCLA"), the Resource Conservation and Recovery Act of 1976, as amended by
the Used Oil Recycling Act of 1980, the Hazardous and Solid Waste Amendments
of 1984, as hereafter amended ("RCRA"), the Federal Water Pollution Control
Act, as now or hereafter amended ("WPCA"), and any laws of the State of
Missouri or any subdivision thereof, relating to the presence of, removal,
spill, release, leaking, or disposal of oil, petroleum, toxic pollutants,
solid waste or other hazardous substances.  The terms "hazardous substance"
and "release" shall have the meanings specified in CERCLA and RCRA; the term
"solid waste" and "disposal", or "disposed", shall have the meanings specified
in RCRA; the terms "oil", "petroleum", and "toxic pollutant" shall have the
meanings specified in WPCA and RCRA; provided that, to the extent that the
laws of the State of Missouri, as currently enacted or hereafter amended,
establish a meaning for "oil", "petroleum", "toxic pollutant", "hazardous
substance", "release", "solid waste", or "disposal" that is broader than that
specified in either CERCLA, RCRA, or WPCA such broader meaning shall apply.

Section 1.16  Gaming Authorities - means all agencies, authorities and
instrumentalities of the City of St. Louis, the State of Missouri, or the
United States of America, or any subdivision thereof, which have jurisdiction
over the Gaming Operations (or any part thereof) at the Casino Project,
including but not limited to the Gaming Commission.

Section 1.17  Gaming License - (or License) means the license or licenses, if
any, granted by the Gaming Commission to President which permit the holder
thereof to legally conduct Gaming Operations in the State of Missouri,
together with any replacements or renewals thereof.

Section 1.18  Gaming Operations - means any operations relating to gaming,
gambling, lotteries, gift enterprises and/or games of skill and chance offered
or conducted at or within the Casino Project, including, without limitation,
the operation of any slot machines, roulette tables, card games or other
gaming devices or games permitted under the Act.

Section 1.19  Gaming Rent - means, collectively, the rental amounts to be paid
by President to the Port Authority pursuant to Article IV (including the
Additional Rent described therein).

Section 1.20  Gaming Vessel(s) - means the structure, improvement or facility
floating within the Mooring Area and meeting the requirements of an excursion
gambling boat or floating facility under the Act, to be constructed, owned and
operated by President pursuant to this Agreement as a part of the Casino
Project, which floating facility or facilities are to be moored within the
Mooring Area and utilized for the conduct of Gaming Operations, and otherwise
operated in accordance with the terms and conditions of this Agreement during
the Mooring Lease Term.

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Section 1.21 Governmental Authorities - means any federal, state, county or
municipal governmental authority, including all executive, legislative,
judicial and administrative bodies thereof.

Section 1.22  Improvements - means any immovable buildings, fixtures,
structures, improvements, roads, roadways, mechanical devices, landscaping,
facilities and appurtenances constructed and situated now or at anytime
hereafter on or within the Levee, Mooring Area or any public right of way.

Section 1.23  Head Tax - means that portion of the admission fee described in
Rev. Stat. Mo. Section 313.820 (1997) which is paid to the City as home dock
city.  Said amount is equal to One Dollar ($1.00) for each person embarking on
a Gaming Vessel.

Section 1.24  Home Dock City Public Safety Fund - means that portion of the
tax on Adjusted Gross Receipts received by the City as the home dock city, all
as defined in Rev. Stat. Mo. Section 313.822(1).  Said amount is equal to two
percent (2%) of the President's Adjusted Gross Receipts from Gaming Operations
authorized under Section 313.800-850.

Section 1.25  Lease Term - (or "Term") means the Lease or Sublease Term of the
Mooring Rights Lease or Sublease, as the case may be (as defined in Section
3.1 below).

Section 1.26  Lease Year - means, as to the Mooring Rights Lease and Sublease,
the period commencing on the Casino Opening Date and ending on the next
succeeding December 31, and, thereafter shall mean each calendar year
thereafter; provided, however, if the Lease Term shall end on a date other
than December 31 of any year, the last Lease Year hereunder shall mean the
period of time ending the date of expiration or earlier termination hereof and
commencing on the immediately preceding January 1.  The term "Full Lease Year"
means any Lease Year containing not fewer than 364 days.

Section 1.27  President - means President Riverboat Casino-Missouri, Inc., a
Missouri corporation, and to the extent succession or assignment is permitted
or authorized pursuant to the terms of this Agreement, any other Person who
becomes the successor to or assignee of all or any part of the rights, duties,
and obligations of President under this Agreement.

Section 1.28  President's Leasehold Interests - means the tenancies and other
rights granted to President by the Port Authority  under this Agreement in
regard to the Mooring Area and Levee.

Section 1.29  Levee  - means the area in the City of St. Louis, Missouri
(sometimes referred to as the improved wharf) immediately adjacent to and west
of the Mooring Area between the water's edge and Leonor K. Sullivan Drive and
more fully described in Exhibit 2, attached hereto and incorporated by
reference herein.  For purposes of determination of Base Rent the water's edge
shall be the mean water line.

Section 1.30  Mooring Area - means the area in the City of St. Louis,
Missouri, within the Port District east of the Levee described in Exhibit 3,
attached hereto and incorporated herein by reference.

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Section 1.31  Mooring Rights - means the exclusive right granted by the City
to President to moor the Gaming Vessel(s) within the Mooring Area.

Section 1.32  Patrons - means those Persons in, on or around the Levee or
Mooring Area on account of the Casino Project for the purpose of participating
in any gaming activities or other forms of entertainment, including the
enjoyment of food and beverages, being offered in, on or around a Casino
Project.

Section 1.33  Person - means any individual, partnership, corporation, limited
liability company, association, unincorporated organization, trust or other
entity, including but not limited to, any government or agency or subdivision
thereof, and the heirs, executors, administrators, legal representatives,
successors and assigns of such Person where the context so permits.

Section 1.34  Port Authority - means the Port Authority of the City of St.
Louis, a political subdivision of the State of Missouri, whose offices are
currently located at 1015 Locust Street, Suite 1200, St. Louis, Missouri
63101.

Section 1.35  Port Commission - means the Board of Commissioners of the Port
Authority.

Section 1.36  Project - means the Casino Project, the Ancillary Facilities
thereto, and the Improvements, furniture, fixtures and equipment to be
constructed or installed by President and at President's sole cost and expense
within the Mooring Area and Levee.

Section 1.37  Relocation Funding Agreement   means the agreement by and among
the City of St. Louis, Missouri, The Port Authority of the City of St. Louis,
Missouri and President Riverboat Casino-Missouri, Inc., of even date herewith.

Section 1.38  Unavoidable Delay - means a delay due to strike, lockout, or
other labor or industrial disturbance, shortages or unavailability of
materials, civil disturbance, lightning, earthquake, fire, storm, hurricane,
tornado, flood, washout, act of God, the failure of any party hereto to
perform any act or fulfill any obligations required to be performed or
fulfilled by said party to the extent the same causes the other party to fail
to perform or satisfy any obligation by a date or time otherwise herein
required, or any causes whatsoever beyond the reasonable control of President
or the City or the Port Authority, whichever of them is alleging the
occurrence of an Unavoidable Delay; provided that enforcement of and
compliance with contracts entered into by President or the City or the Port
Authority shall be deemed to be within the reasonable control of President or
the City or the Port Authority, respectively, and provided further that the
lack of funds or inability to obtain or maintain financing shall not be deemed
to be a cause beyond the reasonable control of President.  Any of the
foregoing events, to the extent resulting as an Unavoidable Delay, being
sometimes herein referred to as an "Unavoidable Delay Event".

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                                  ARTICLE II
                                LEASED RIGHTS

Section 2.1  Unsubordinated Lease and Sublease

A.  In consideration of the obligations undertaken hereunder by the Port
Authority to pay Gaming Rent to the City as hereinafter set forth, and in
consideration of the other terms, provisions, covenants and conditions of this
Agreement, the City hereby leases to the Port Authority and the Port Authority
takes, accepts and leases from the City, the Mooring Area and the Levee.

B.  In consideration of the obligations undertaken hereunder by President to
pay Gaming Rent to the Port Authority as hereinafter set forth, and in
consideration of the other terms, provisions, covenants and conditions of this
Agreement, the Port Authority hereby subleases to President and President
takes, accepts and leases from the Port Authority, the Mooring Area and the
Levee.

Section 2.2  Reserved Easements

The City hereby reserves a nonexclusive easement over the Levee for the
purpose of levee maintenance, including cleaning mud and debris.  The City
further reserves a nonexclusive easement for a sidewalk east of the curb of
Leonor K. Sullivan Boulevard except over such areas as President may improve
with its porte cochere, ramps, walks and paved areas; such sidewalk may be
used for pedestrian access and for the installation and maintenance of light
standards and decorative fences.  The City hereby reserves for the benefit of
the Metropolitan Sewer District the right to maintain existing storm sewers
and drains on the Levee.  Nothing herein shall relieve President of its
obligations to maintain and keep clean the Levee and Mooring Area as more
specifically set forth in Section 6.3 hereof.

                                 ARTICLE III

                                TERM OF LEASE

Section 3.1  Term of Lease and Sublease of Levee and Mooring Area

A.  Subject to the terms, covenants, agreements and conditions contained
herein, the Port Authority shall have and hold the Levee, the Mooring Area,
and the Mooring Rights therein, for a term (the "Mooring Rights Lease Term")
of twenty-five (25) years commencing on the Effective Date and terminating at
11:59 p.m. (St. Louis time) on the twenty-fifth (25th) anniversary of the
Effective Date.

B.  Subject to the terms, covenants, agreements and conditions contained
herein, President shall have and hold the Levee, the Mooring Area, and the
Mooring Rights therein, for a term (the "Mooring Rights Sublease Term") of
twenty-four (24) years and three hundred sixty-four (364) days, commencing on
the Effective Date and terminating at 11:59 p.m. (St. Louis time) on the day
prior to the date of the twenty-fifth (25th) anniversary of the Effective
Date.

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<PAGE> 164
Section 3.2  President Termination Right

Anything herein contained to the contrary notwithstanding, President shall
have the right to terminate its rights and obligations hereunder (however, all
other rights of the other parties hereto shall survive any such termination)
upon not less than one (1) year prior written notice to the Port Authority by
President of the date on which such termination shall occur, and the payment
of an additional amount equal to the Base Rent for the one-year period
following the effective date of such termination, provided that on the
effective date of termination set forth in any such written notice and
continuously thereafter, President, its successors and assigns, shall abandon,
cease and terminate any gaming activities within the Mooring Area and comply
with the provisions of Section 9.3 hereof and no such termination shall affect
any rights under any leasehold or subleasehold deed of trust.  In connection
with the termination of this Agreement pursuant to this Section 3.2, each
party shall bear all costs and expenses incurred by it without reimbursement
from any other party unless otherwise expressly provided herein.  Nothing in
this Section 3.2 shall relieve President of any obligation that may accrue
under this Agreement, including the Debt, prior to the date of termination as
aforesaid or entitle President to any reimbursement of amounts previously paid
under the terms of this Agreement, whether or not accrued prior to the date of
termination.

                                  ARTICLE IV
                RENT, ADDITIONAL RENT AND OTHER CONSIDERATION

Section 4.1  Base Rent

A.  For the rights and privileges granted and subleased herein, President
shall pay to the Port Authority an annual Base Rent of $13.50 per linear foot
of Mooring Area and $0.135 per square foot of Levee area.  The Base Rent shall
accrue from the date the Admiral is moved from the mooring area defined in the
1983 Lease, as hereinafter defined, to the Mooring Area, and shall be payable
to the Port Authority annually in advance on the Casino Opening Date and on
each successive anniversary of such moving date.  The Base Rent to be paid to
the Port Authority shall be subject to adjustment as provided in Section
4.1.B. below.

B.  Pursuant to Ordinance No. 57933, the annual Base Rent of $7.50 (current
adjusted base rate of $13.50) per linear foot of Mooring Area and $0.0750
(current adjusted base rate of $0.135) per square foot of Levee may be
adjusted at five (5) year intervals beginning January 1, 2004, upon the
recommendation of the Port Commission and the approval of the Board of Public
Service.  No recommendation may be made by the Port Commission unless within
one hundred eighty (180) days before the effective date of such adjusted Base
Rent, the Port Commission shall conduct a public hearing with due notice to
the public and to the lessees of City-owned land and mooring rights under
leases which are subject to the provisions of Ordinance No. 57933.  The
maximum adjustment which can be recommended and approved at any interval shall
be 25% of the then applicable Base Rent.  Each adjustment shall be added to
the Base Rent plus any previous adjustments thereof and the resulting rate
shall then become the basis for calculating the Base Rent.  If, upon the
recommendation of the Port Commission, the Board of Public Service shall

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<PAGE> 165
approve an increase in the Base Rent in excess of 15%, such increase in the
Base Rent shall not be effective hereunder unless approved by resolution of
the Board of Aldermen of the City of St. Louis.  If the Board of Aldermen
fails to act before the effective date of the new Base Rent, the Base Rent
increase shall be limited to 15% and may not thereafter be increased until the
next Base Rent adjustment date five (5) years hence.  Any adjustment in Base
Rent made as hereinabove provided shall become effective hereunder as of the
next date on which payment of Base Rent shall be due hereunder.

C.  For the rights and privileges granted and leased herein, the Port
Authority shall promptly pay to the City an amount equal to all Base Rent
received from time to time from President, which the City shall deposit and
allocate as required by law, including Ordinance No. 57326, unless otherwise
expressly required by this Lease and Sublease Agreement or the Relocation
Funding Agreement.

Section 4.2  Percentage Rent

A.  As an additional part of the consideration for the rights granted
hereunder, at any time President operates gambling games on any vessel
utilizing the Mooring Rights pursuant to any law of the State of Missouri,
President shall pay to the Port Authority in monthly installments during each
Lease Year of the Mooring Rights Lease Term, rent (herein referred to as
"Percentage Rent") as specified in Exhibit 1, attached hereto and incorporated
by reference herein.  President and Port Authority agree that the Percentage
Rental shall not be subject to adjustment.

B.  President's obligation to pay Percentage Rent shall commence as of the
Casino Opening Date.  Payment of the Percentage Rent due hereunder (if any) in
regard to any calendar month shall be due and payable monthly, in arrears, and
shall be calculated on the basis of the Adjusted Gross Receipts for the period
from the beginning of such Lease Year to the end of the month next preceding
the date on which Percentage Rent is being paid, less the total amount of
Percentage Rent previously paid during such Lease Year.  Percentage Rent shall
be due and payable on the last day of the month following the month in which
the Adjusted Gross Receipts were received.

C.  Together with each payment of Percentage Rent required in Section 4.2(A),
President shall deliver to Port Authority a detailed statement (herein
referred to as the "Gaming Percentage Statement") of the Adjusted Gross
Receipts of the previous calendar month and for the Lease Year to date, as
well as a calculation of the amounts of Percentage Rent paid and payable for
the Lease Year to date.  In the event that any such Gaming Percentage
Statement reveals that the amount of the Gaming Rent paid for the Lease Year
to date is less than the total amount of Gaming Rent actually due for the
Lease Year to date, President shall immediately pay to Port Authority the
amount of such shortage.

D.  As an additional part of the consideration for the rights granted
hereunder, the Port Authority shall promptly pay to the City an amount equal
to all percentage Rent received from time to time, which the City shall
deposit and allocate as required by law, including Ordinance No. 57326, unless
otherwise expressly required by this Lease and Sublease Agreement or the

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<PAGE> 166
Relocation Funding Agreement.

Section 4.3  Delinquent Rent

Any delinquent payment of rent or any other sum due and owing from President
hereunder shall bear interest from the date such payment was due at the prime
rate plus two percent (2%) per annum ("Default Rate"), which interest shall be
additional rent payable hereunder.  The prime rate shall be the average of the
prime or base rates established by Mercantile Bank National Association and
Bank of America, N.A., or their successors, or if neither of said banks shall
then publish its prime or base rate, then at the prevailing prime rate as
reported by the Wall Street Journal.

Section 4.4  Net Lease

It is the purpose and intent of the Port Authority and President that the Base
Rent and Additional Rent payable hereunder shall be fully net to the Port
Authority so that this Agreement shall yield to the Port Authority a sum not
less than the payments specified in this Agreement in each year that such is
applicable during the terms of this Agreement and that all costs, expenses,
taxes, and charges of every kind and nature incurred by the Project that may
be attributed to, or become due during the term of this Agreement shall be
paid by President.

Section 4.5  Pro-rated Payments

Should any payment required by this Agreement be due for a period less than a
full week, month, quarter, year or other installment period (e.g., a payment
due in the middle of a month), the amount due shall be prorated on a per diem
basis calculated on the number of days in the applicable installment period.

Section 4.6  Casino Project Development Costs and Repayment

A.  The parties recognize that the relocation of the Admiral to the Mooring
Area and the construction of the Casino Project is in the best interest of the
City and the Port Authority and that major components of the Casino Project
are measures and obligations designated to enhance and provide for the safety
of visitors to the Gaming Vessel(s).

B.  To that end, the City and the Port Authority hereby authorize the use of a
portion of the revenues which they derive from the Gaming Operations and the
Casino Project to be directed to repay the Debt, until paid in full, all as
set forth in Relocation Funding Agreement.

C.  Any and all costs in excess of Three Million Dollars ($3,000,000.00)
necessary to complete the Casino Project shall be borne by President with no
obligation of repayment by the City or the Port Authority.

                                  ARTICLE V
                                  LICENSING

Section 5.1  Gaming License

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<PAGE> 167
A.  The Gaming Commission has amended President's Gaming License to operate
the Admiral and in the Mooring Area, subject to the conditions that President
not commence operations at the new site until the Executive Director of the
Gaming Commission gives written authorization for operations to begin and that
President obtain all required governmental permits and approvals.

B.  The City, Port Authority and President shall each have the right to
terminate President's rights and obligations under this Agreement, by written
notice to the other delivered at any time on or after the earlier of (i)
eighteen (18) months after the Effective Date (without regard to Unavoidable
Delays) or (ii) six (6) months after the date the Admiral is moved to the
Mooring Area, but prior to the date on which President shall have satisfied
the conditions expressed in Section 5.1.A., in the event President shall fail
to have satisfied such conditions on or prior to such date; provided, however,
the City and the Port Authority (the City acting through its Board of Estimate
and Apportionment),  acting in their sole and absolute discretion, may extend
the aforesaid date to any date, in their discretion, by written notice to
President (however, all other rights of the other parties hereto shall survive
any such termination).  The right of the City and the Port Authority to
terminate this Agreement as provided in this Section 5.1(B) shall be the sole
right and remedy of the City and the Port Authority for President's failure to
satisfy such conditions, subject, however, to those continuing obligations of
President which survive termination, as more fully set forth in Section 18.2
hereof.  Moreover, nothing in this Section 5.1B shall relieve President of any
obligation that may accrue prior to the date of termination, as aforesaid, or
entitle President to any reimbursement of amounts previously paid under the
terms of this Agreement.

C.  President shall act diligently to comply in all respects with the rules
and regulations of the Gaming Commission and shall use reasonable efforts to
maintain and renew its Gaming License as and when necessary at all times
during the Mooring Rights Lease Term.

D.  In the event any provision of this Agreement (other than a provision
required by applicable law, and subject, further, to the provisions of Section
4.6) shall result in the denial, revocation, suspension or failure to renew
any gaming or similar license applied for or obtained by President (or any
member, shareholder or partner of President, or any of their respective
Affiliates) at any time during the Term (whether issued by the State of
Missouri or any other jurisdiction either within or outside the State of
Missouri), the City and the Port Authority agree that they shall not enforce
the said provision and shall waive its compliance by President.  Further, and
notwithstanding Section 20.15, this Agreement shall be deemed amended, without
further act or notice of either party hereof, to the extent necessary to cause
this Agreement to comply with the Act; however, nothing herein shall cause the
Term hereof to be extended beyond that contemplated hereby, or reduce or
increase the amount of Gaming Rent otherwise required to be paid hereunder;
provided, however, no right, power, privilege, remedy or interest of President
under this Agreement shall be limited, restricted or otherwise prejudiced.

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                                  ARTICLE VI
                   OPERATIONAL COVENANTS REGARDING PROJECT

Section 6.1  Light Standards

President agrees to purchase and install light standards according to City
specifications in the area over which the City has reserved an easement for
sidewalk purposes north and south of the porte cochere and ramp and paved
areas indicated in Exhibit 4 hereto.  Such light standards shall thereafter
during the Lease term be maintained and, if necessary, replaced by the City.
Electric power and electric light bulbs shall be provided by the City.

Section 6.2  Curb Cut

President agrees to construct at President's sole cost and expense one curb
cut between President's porte cochere and the flood wall north of said porte
cochere at a location directed by the Street Director of the City.

Section 6.3  Trash and Garbage Disposal

The parties acknowledge that neither the Port Authority nor the City shall be
responsible for providing trash and garbage disposal services to President
hereunder.  President hereby covenants and agrees that it shall use reasonable
efforts to prohibit and prevent the accumulation of litter, garbage, refuse or
trash (herein collectively referred to as "Refuse") or storage of any Refuse,
in, on or around the Levee and Mooring Area except in designated areas and in
containers and receptacles intended for the temporary storage thereof, and
shall keep the Levee and Mooring Area neat and clean.  Further, President
shall post signs and take other reasonable steps to prevent its Patrons or any
other person in the Mooring Area from throwing of any Refuse of any sort into
the Mississippi River.  President shall be responsible for housekeeping in the
Levee and Mooring Area.

Section 6.4  Marine Survey

Annually, President must present to the Port Commission a marine survey of the
safety of the Gaming Vessel(s) operated by President.

                                 ARTICLE VII
          REPRESENTATIONS AND WARRANTIES OF CITY AND PORT AUTHORITY

Section 7.1  Representations and Warranties of City and Port Authority

In order to induce President to enter into this Agreement, the City and the
Port Authority represent and warrant the following to President:

A.  The City and the Port Authority have the right, power and authority to
enter into this Agreement, to grant a leasehold interest and a subleasehold
interest in the Mooring Area and Levee, respectively, and other rights granted
herein, and to make the covenants, commitments, representations and warranties
made herein.

B.  To the best of the knowledge and belief of the City and of the Port

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<PAGE> 169
Authority, the execution and delivery of this Agreement and the consummation
of the transactions contemplated by this Agreement and compliance with the
terms of this Agreement do not, nor with the passage of time or both will not,
constitute a default under any agreement, judgment, order, decree or ruling of
any court or agency to which the City or the Port Authority are subject.

C.  The execution and delivery of this Agreement by the City and the Port
Authority have been approved by all necessary action of all Governmental
Authorities (including, without limitation, the Board of Aldermen of the City
of St. Louis and the Board of Commissioners of the Port Authority of the City
of St. Louis) and, when executed and delivered by duly authorized
representatives of the City, the Port Authority and President, will constitute
the legal, valid and binding obligation of the City and the Port Authority,
enforceable against the City and the Port Authority in accordance with its
terms.

D.  The City and the Port Authority are political subdivisions of the State of
Missouri.

                                 ARTICLE VIII
                 REPRESENTATIONS AND WARRANTIES OF PRESIDENT

Section 8.1  Representations and Warranties of President

In order to induce the City and the Port Authority to enter into this
Agreement, President represents and warrants the following to the City and the
Port Authority:

A.  President is a Missouri corporation duly organized, validly existing and
in good standing under the laws of the State of Missouri, and has full power
to enter into and perform its obligations under the terms of this Agreement,
and the authority to enter into this Agreement and to bind President thereby.

B.  The execution and delivery of this Agreement for and on behalf of
President has been approved by all requisite action on the part of President
and, upon execution and delivery hereof by duly authorized representatives of
the City, the Port Authority and President shall constitute the valid and
binding obligation of President enforceable against President in accordance
with its terms.

C.  To the best of President's knowledge and belief, the execution and
delivery of this Agreement and the consummation of the transactions
contemplated by this Agreement in compliance with the terms of this Agreement
do not, or with notice or the passage of time or both will not, constitute a
default under any agreement, or any judgment, order, decree or ruling of any
court or agency to which President, or any Affiliate is subject.

D.  To the best of President's knowledge, there is no condition or fact that
would render President unsuitable under the Act to maintain its Gaming License
or to obtain approval from the Gaming Commission for relocation of the Admiral
to the Mooring Area.

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<PAGE> 170
                                  ARTICLE IX
                        USE OF MOORING AREA AND LEVEE

Section 9.1  Use of Mooring Area

The Mooring Area shall be used by President only for purposes consistent with
the lawful use thereof, including the mooring of Gaming Vessel(s) and the
construction of mooring arrangements as shown on Exhibit 4 hereto.  President
shall not be restricted by this Agreement with respect to the number of
vessels or gaming positions in the Mooring Area.

Section 9.2  Use of Levee

The Levee shall be used for ingress and egress to and from the Mooring Area
for President's employees, agents, servants, patrons, suppliers, vendors and
invitees, for the placement of cables securing the Gaming Vessel(s) to deadmen
located on the Levee, for the placement of ramps providing access to and from
the Gaming Vessel(s), and to use utility hook-ups on the Levee.  President
shall have the obligation to keep the Levee clean and free of all litter,
trash and debris of any kind.

President may also use the Levee for construction of an open porte cochere and
for approaches and access thereto as shown on Exhibit 4 hereto.

President shall have the right to install, use or modify the installation of
deadmen and mooring arrangements on the Levee in accordance with plans and
specifications prepared by a licensed civil engineer for such installation or
modification of the installation or use thereof, provided said plans and
specifications have been approved by the Board of Public Service.  President
shall obtain all necessary permits from the appropriate Governmental
Authorities for the installation and use of such deadmen and mooring
arrangements.  Structures or major alterations shall be made in accordance
with plans and specifications approved by the Port Authority and by the City
through the Board of Public Service.

Section 9.3  Removal

Upon and after the expiration, termination, or cancellation of this Agreement,
President shall remove all and any vessels, boats, watercraft or other
practical movable structures from the Mooring Area and, at the Port
Authority's option, all and any improvements from the Levee, all without
expense to the City or the Port Authority.  In the event said vessels, boats,
watercraft or improvements are not removed within one hundred eighty (180)
days after receipt of notice by President, the City or the Port Authority may
cause same to be removed and disposed of at the expense of President.

Section 9.4  Nondiscrimination

A.  President agrees that in connection with the use and occupancy of the
Levee and the Mooring Area, and in performing its obligations under this
Agreement, neither President, its employees, agents, servants,
representatives, nor anyone acting within President's control will
discriminate against any employee, Patron, applicant for employment or any

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other person on the basis of race, creed, color, religion, national origin,
ancestry, sex, age, disability, handicap, veteran status, marital status,
income or sexual preference.  This requirement shall apply, but not be limited
to, the following:  employment, upgrading, demotion or transfer, recruitment
or recruitment advertising, layoff or termination, rates of pay or other forms
of compensation, and selection for training.  There shall be posted in
conspicuous places, available to employees and applicants for employment,
notices to be provided by the City or the Port Authority setting forth the
provisions of this Section.  All solicitations or advertisements for
employment shall state that all qualified applicants will receive
consideration for employment without regard to race, color, religion, sex,
age, physical handicap, national origin or sexual orientation.  President
agrees to use reasonable efforts and reasonable diligence to implement the
policies, ordinances and Mayor's Executive Orders of the City of St. Louis
requiring maximum utilization of City-certified minority and women-owned
business enterprises in all phases of procurement and contracting by President
in connection with the construction of the Casino Project, including but not
limited to construction, goods and professional services.

B.  President agrees that any service contract entered into by President
pertaining to the Casino Project shall contain those contractual provisions
set forth in Ordinance No. 62124.

                                  ARTICLE X
                      CONDITION AND WARRANTIES OF TITLE

Section 10.1  Condition of the Levee and Mooring Area

It is understood and agreed by the parties that President takes and accepts
the Levee and Mooring Area in "as is" condition and that this Agreement
imposes no obligation of any kind on the City or the Port Authority to make
any changes or improvements of any kind thereto.  It is further understood and
agreed that except as otherwise expressly stated herein, President will accept
and take the Levee and Mooring Area without any express or implied warranties
of suitability, merchantability, fitness for a particular purpose or
environmental fitness.  The City and the Port Authority do not warrant or
guarantee the condition of the Levee and Mooring Area for any particular
purpose nor does it warrant or guarantee that the Levee and Mooring Area is
free of any visible, hidden, or latent defects of any kind or nature,
including but not limited to any defects and/or any environmentally unsafe
condition in violation of any Environmental Laws.  The City and the Port
Authority have made no representations or warranties, express or implied, and
explicitly disclaims the same concerning the absence of any pollution,
contamination, hazardous waste,  hazardous or toxic material or substance,
underground storage tanks or hazardous building materials in, on or around the
Levee or Mooring Area, except as may be specifically and expressly stated
elsewhere in this Agreement.

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                                 ARTICLE XI
                     SUBLETTING, ASSIGNMENT AND TRANSFER

Section 11.1  Assignment or Subletting

Except as otherwise provided in this Agreement, President shall not, assign,
sell or transfer this Agreement or the Leasehold Interests, or any interest
herein, or sublet the Mooring Area, or any parts thereof, without the prior
written consent of the City or the Port Authority, as the case may be.

Section 11.2  Estoppel Certificates

If the Port Authority and/or the City shall have been requested to do so in
writing by President, it shall deliver to any potential mortgagee, purchaser
or assignee (hereinafter referred to as a "Transferee") or to the party
designated by the Transferee in any written notice to the Port Authority
and/or the City, an instrument in writing addressed to President, Transferee
and any party designated by Transferee in its notice to the Port Authority
and/or the City requesting delivery of the said written instrument, stating
that (i) this Agreement has not been altered, modified or amended and remains
in full force and effect (or, if applicable, setting forth the nature of any
such alteration, modification or amendment); (ii) stating the date to which
Base Rent and Percentage Rent has been paid hereunder; and (iii) setting forth
such additional information as President shall reasonably request and as shall
be available to the Port Authority and/or the City without unreasonable effort
or expense which additional information, if deemed necessary by the Port
Authority and/or the City may be limited to the actual knowledge of the Port
Authority and/or the City.  In no event shall the Port Authority or the City
be required to incur any expense (unless indemnified therefor in advance to
the reasonable satisfaction of the Port Authority or the City, as the case may
be) in complying with any request referred to above.  If, having requested
delivery of such written instrument, the Port Authority and/or the City (as
the case may be) shall fail to deliver the same on or prior to twenty (20)
days after request therefor, the Port Authority and City shall irrevocably and
unconditionally be deemed to have confirmed to President and Transferee, and
such other parties referred to above, all facts which President has requested
that the Port Authority and the City shall confirm including, without
limitation, that there has not, as of said date, occurred any default or Event
of Default, or any act, both, would constitute a default or Event of Default
hereunder which remains uncured as of said date and that, accordingly, this
Agreement is in full force and effect as of said date.  President, Transferee
and any other party to whom such written instrument shall be directed, or to
whom President has requested that the same be directed, may rely on such
instrument, and on the provisions of this Section 11.2, and the Port Authority

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and City shall thereafter forever and completely be estopped from denying the
truth and accuracy of any statement made by the Port Authority and City in any
written instrument furnished, or deemed furnished, pursuant to the provisions
of this Section 11.2.

Section 11.3  Encumbrance

The City hereby consents to the encumbrance of the leasehold and subleasehold
and mooring rights created by this Agreement to a mortgagee (as hereinafter
defined) in connection with the financings described in Section 20.21 hereof.
The approval of the Board of Public Service may be evidenced by its signature
on an endorsement to this Agreement.

                                 ARTICLE XII
                                ENVIRONMENTAL

Section 12.1  Environmental Obligations

President agrees to abide by all City ordinances, state laws, federal laws,
Coast Guard, Corps of Engineers and any other properly applicable governmental
regulatory requirements, including, but not limited to, any and all such
provisions regulating and/or relating to the:  (i) transportation, storage,
use, manufacture, disposal, discharge, release or spilling of hazardous
substances; (ii) transportation, storage, use, recovery, disposal, discharge,
release or spilling of oil; (iii) discharges of effluents, pollutants and/or
toxic pollutants to either publicly owned treatment works or directly to
waters of the United States or tributaries thereof; (iv) emissions, release or
discharges of pollutants and/or other substances into the air or land; (v)
transportation, storage, treatment, disposal, discharge, release or treatment
of infectious waste, (vi) transportation, storage, treatment, recycling,
reclamation, disposal, discharge, release, or spilling of solid waste; and
(vii) transportation, storage, or disposal of waste tires, used white goods
and other appliances, waste oil, and/or used lead-acid batteries.  President
shall call to the attention of the proper enforcement authorities any
violation of any federal or state law or City ordinance occurring in the
Mooring Area or Levee of which President has actual knowledge.

Should President's operation in the Mooring Area or Levee violate any
provision of federal and/or state laws or regulations, President shall,
immediately upon becoming aware of the existence of such violation, notify the
Port Authority and undertake whatever action is necessary to remedy the
violation and comply with the applicable provision(s), including but not
limited to the institution of legal proceedings seeking an injunction in a
court of competent jurisdiction.  Should President fail to remedy violation,
the City Counselor may notify President of its intent to undertake remedial
action.  If President fails to then institute reasonable remedial action
within 96 hours of receiving said notice, the City may take whatever action is
necessary to remedy the violation.  In the event that pursuant to the previous
sentence the City remediates an environmental condition in the Mooring Area or
Levee, President shall reimburse the City for all costs incurred by the City
in remedying such violation, including, but not limited to, reasonable
attorneys' fees and expenses, litigation costs, fees for engineering and
consulting services, and costs of testing, remediation, removal and disposal.

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Section 12.2  Underground Storage Tanks

President shall not remove any underground or aboveground storage tanks
located in the Mooring Area or Levee without first obtaining the written
consent of the Port Commission, which consent shall not be unreasonably
withheld.  In no event shall President abandon in place an underground storage
tank.  Nor shall President install any underground or aboveground storage
tanks in the Mooring Area or Levee without first obtaining the permission of
the Port Authority.  Unless specifically stated elsewhere in this Agreement,
the Port Commission shall have the absolute discretion to approve or deny a
request by President to install a new underground or aboveground storage tank.
Notwithstanding the foregoing provisions, where President proposes to replace
an existing underground or aboveground storage tank with a new tank, the Port
Commission shall not unreasonably withhold permission therefor.

Section 12.3  Environmental Authorization

Unless specifically stated elsewhere in this Agreement, President must obtain
the explicit written permission of the Port Commission prior to applying to an
agency or agencies of the state and/or federal governments for a permit or
license to:

A.  treat, store or dispose of hazardous substances;

B.  treat, store or dispose of waste oil;

C.  treat, store, process, manage, recycle or dispose of solid waste;

D.  operate a waste tire site or waste tire processing facility; or

E.  manufacture hazardous or toxic substances;

on all or a portion of the Mooring Area or Levee.  President shall not engage
in any of the operations enumerated above, for which a federal and/or state
permit or license is required, without first obtaining explicit written
permission therefor from the Port Commission.  President shall not apply for a
permit or license to allow it to place, nor shall President place, any fill or
dredged material into the waters of the United States or tributaries thereof
which are adjacent to or in the Mooring Area or Levee without first obtaining
the explicit written approval of the Port Commission therefor.

Section 12.4  Termination

President agrees and warrants that, upon the expiration or earlier termination
of President's tenancy of the Mooring Area and Levee pursuant to the terms of
this or a subsequent Agreement, it shall return the Mooring Area and Levee to
the City free of any and all hazardous or toxic substances, hazardous waste,
infectious waste, solid waste (unless disposal of solid waste on the leasehold
was specifically permitted by the terms of this Agreement or a subsequent
written document executed on behalf of, and authorized by, the Port
Commission), pollutants, and contaminants which were placed, released,
discharged, disposed, and/or spilled on or into the Mooring Area or Levee
during President's tenancy.  President shall, upon termination of its tenancy,

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<PAGE> 175
remove all product(s) or waste(s) stored in underground or aboveground storage
tanks, located on the Mooring Area or Levee, which were installed or used
during the term of this Agreement.  Upon termination of tenancy, President
shall also perform tank tightness testing on all underground and aboveground
storage tanks and connecting piping, installed or used during the term of this
Agreement, and shall either remove or repair any tanks or piping which fail
such tests.  President shall also either remove or decontaminate any soil
contaminated by leaks from storage tanks or connecting piping installed or
used during the term of this Agreement.  In the event that President fails to
perform its obligations pursuant to this Section, the City shall give
President notice of said failure within thirty (30) days of discovering the
President's default of its obligations under this Section.  If President fails
to fully comply with its obligations hereunder within thirty (30) days of such
notice, the City may undertake such actions as are necessary to bring the
Mooring Area and Levee into compliance with the standards set out herein.  In
the event that the City is required to undertake actions to bring the Mooring
Area and Levee into compliance with said standards, President shall reimburse
the City for all costs thereof, including, but not limited to, reasonable
attorneys' fees and expenses, litigation costs, fees for engineering and
consulting services, costs of testing, removal, and/or remediation, and
disposal costs.

Section 12.5  Compliance

President shall, with respect to its use of the Mooring Area and Levee,
periodically furnish the Port Authority with satisfactory proof that it is in
full compliance with any and all federal and/or state laws and regulations and
City ordinances relating to or concerning air quality, water quality, noise,
hazardous or toxic materials, hazardous wastes, infectious wastes, solid
wastes, underground storage tanks and hazardous building materials.  Further,
the City and the Port Authority shall have the right to inspect any and all
portions of the Mooring Area and Levee, including facilities or vehicles
located thereon, at any time during normal business hours or at any time if
the City and the Port Authority have reason to believe that a violation of any
federal or state law or City ordinance has occurred or is about to occur.

                                 ARTICLE XIII
                                 IMPOSITIONS

Section 13.1  Taxes and Impositions

A.  President agrees to pay ad valorem taxes on boats, vessels, watercraft,
real property interests, or Ancillary Facilities that may be constructed on
the Levee or moored in the Mooring Area and on any operations within the Levee
or Mooring Area, including all other owned property and equipment, and it is
agreed that the President will not deny the authority of the proper assessing
agency to assess ad valorem taxes on said vessels or improvements. President
reserves the right to appeal the amount of such assessments in any court of
competent jurisdiction or other tribunal established by law to correct the
valuation of the property on which the assessment of such tax is based.

                                 ARTICLE XIV
                                  INSURANCE

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<PAGE> 176
Section 14.1  Insurance

President agrees to secure, maintain, and keep in force at all times during
the term of this Agreement and any renewal or extension hereof, at President's
sole cost and expense:  (i) Commercial general liability insurance on an
"occurrence basis" against claims for "personal injury" including, without
limitation, bodily injury, death and property damage occurring on, in or about
the Mooring Area and Levee; such insurance shall afford immediate minimum
protection of $1,000,000 combined single limit per occurrence; (ii) worker's
compensation insurance in full compliance with all applicable state and
federal laws and regulations; and (iii) commencing on the Casino Opening Date,
business interruption insurance which may be occasioned by a casualty or
catastrophe which interrupts the normal business and earnings of President.

Section 14.2  Form of Insurance and Insurers

Policies of insurance provided for under this Agreement shall be effected
under valid and enforceable policies, in such form as shall be approved by the
Comptroller as to surety and reserving the right of recovery by the City
and/or the Port Authority in the event of damage to Port Authority- or
City-owned property.  All such policies of insurance shall be issued by
insurance companies of recognized responsibility which are reasonably
satisfactory to Comptroller and which are licensed to transact business in the
State of Missouri (although President may utilize excess lines insurance
carriers, who may not be so licensed, for its marine insurance).  Each
insurance policy required to be obtained under this Agreement shall name the
City and the Port Authority and any Leasehold or Subleasehold Mortgagee as
additional insureds thereof.  Included in the appropriate insurance policy
shall be coverage providing for the removal of any portion of the Gaming
Vessel(s) when damaged or sunken from any cause whatsoever and this clause
shall be expressed as a specific warranty by the insurance company regardless
of cause.  Self insurance will not comply with the requirements of this
Article.

In addition, all such policies of insurance shall contain (i) contractual
liability endorsements covering the agreements of President to indemnify the
Port Authority and the City from and against all cost, expense and/or
liability as contractually undertaken by President under the terms of this
Agreement, (ii) a provision that no act or omission of President which would
otherwise result in forfeiture or reduction of the insurance therein provided
shall affect or limit the obligation of the insurance company so to pay the
amount of any loss sustained, and (iii) an endorsement providing that such
insurance may not be materially changed, amended or canceled with respect to
the City except after at least sixty (60) days prior written notice from the
insurance company to the Comptroller, sent by registered mail.

Section 14.3  Cancellation of or Failure to Obtain Insurance

In the event that any policy which President is required to obtain pursuant to
the provisions hereof is canceled by the insurer, President shall be required
to obtain replacement insurance, and provide proof thereof to the Comptroller,
prior to the date that the cancellation becomes effective. President shall

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<PAGE> 177
cause the insurance company to notify the Comptroller of the renewal of all
insurance required pursuant to the provisions of this Article XIV.

If President at any time fails or refuses to procure and maintain the required
amount of insurance, then the City or the Port Authority may, and without
notice to President, obtain same for and on behalf of President and charge the
cost thereof to President, such charge to be due and payable upon demand and
shall be Additional Rent hereunder.

Section 14.4  Delivery of Insurance Policies

Each insurance policy required to be obtained pursuant to this Agreement, or a
copy, or certificate thereof, together with reasonably satisfactory evidence
of payment of the premium thereof, shall be delivered to the Comptroller on or
before the date the Gaming Vessel(s) are moored or installed within the
Mooring Area, and upon renewals of such policies, not later than the date of
expiration of any prior coverage.

                                  ARTICLE XV
                               INDEMNIFICATION

Section 15.1  Indemnification

President agrees to hold harmless and defend the City and the Port Authority,
their aldermen, commissioners, officers, employees and agents, and successors
and assigns from any and all claims for injuries or damages resulting from or
arising out of President's use of the Mooring Area or Levee.  President hereby
waives and releases any claims for contribution and/or comparative fault
against the City and the Port Authority resulting from or arising out of
President's use of the Mooring Area or Levee.

Section 15.2  Environmental Indemnity

President, its successors and assigns, shall forever indemnify, defend and
hold harmless the City of St. Louis, the St. Louis Port Authority, their
aldermen, commissioners, officers, employees and agents, and successors and
assigns, from and against all harms, including without limitation, damages,
liabilities, losses, demands, claims, cost recovery actions, lawsuits,
administrative proceedings, orders, response costs, compliance costs,
investigation expenses, consultant fees, attorneys' fees, paralegals' fees and
litigation expenses, arising from:

A.  any hazardous substance discharged by President, its successors or
assigns, at the Mooring Area or Levee;

B.  the operation of any applicable Environmental Law against President
involving the Mooring Area or Levee;

C.  the violation at the Mooring Area or Levee or by President of any
applicable Environmental Law; or

D.  any third party claims or suits filed or asserted involving Hazardous
Material at the Mooring Area or Levee.

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President, and its successors and assigns, shall pay all costs and expenses
incurred by the City and the Port Authority and their successors and assigns,
to enforce the provisions of this indemnification, including without
limitation, reasonable attorneys' and paralegals' fees and litigation
expenses.  The obligations and indemnification of President under this Section
shall survive the termination of this Agreement and shall remain in  force
beyond the expiration of any applicable statute of limitations and the full
performance of President's obligations hereunder.

President shall be required to purchase and maintain environmental impairment
liability insurance during the term of this Agreement in the amount of One
Million Dollars ($1,000,000.00), or such other amount as shall be reasonably
determined solely by the Port Commission, and naming the City and the Port
Authority as additional insureds, if:

(1)  at any time more than a reportable quantity of a hazardous substance, oil
or infectious waste will be stored or otherwise present in violation of law on
the Mooring Area or Levee in any type of container(s) (including, but not
limited to, drums, barrels, boxes, bags, tank trucks or trailers, rail cars or
storage tanks, whether above or below ground);

(2)  President is required by federal or state law and/or regulation, as a
result of or in connection with President's operations in the Mooring Area or
Levee, to obtain a permit for (a) discharges of effluents, pollutants, toxic
pollutants or other substances into waters of the United States, tributaries
thereof, sewer systems and/or publicly owned treatment works; (b) discharges
of effluents, pollutants or toxic pollutants to a sewer system and/or publicly
owned treatment works subsequent to pretreatment thereof; (c) emissions,
release or discharges of pollutants or other substances into the air or land;
(d) treatment, storage or disposal of hazardous waste(s); (e) treatment,
storage or disposal of infectious waste(s); (f) treatment, storage,
processing, management, recycling or disposal of solid waste(s); (g) operation
of a waste tire site or waste tire processing facility; or (h) placement of
fill or dredged material into the waters of the United States or adjacent
property;

(3)  President files reports required by Environmental Laws or is otherwise
required to obtain a hazardous waste generator identification number from
either the federal or a state government;

(4)  President engages in the recycling, recovery or reclamation of solid
wastes or hazardous materials in the Mooring Area or Levee;

(5)  President engages in the manufacture of hazardous, extremely hazardous,
and/or toxic substances in the Mooring Area or Levee.

The environmental impairment liability insurance required pursuant to the
terms of the preceding paragraph shall provide coverage for unexpected and
unintended liability, damages and injuries arising or resulting from sudden
and accidental, continuous or repeated discharges, spills and releases, into
or onto the air, water, soil, sewer system or similar media, of any hazardous
substance, hazardous waste, pollutant, toxic pollutant, extremely hazardous
substance, toxic substance, infectious waste, solid waste, or similar material

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or substance, which disposal, discharge, release or spill occurs on or from
the Mooring Area or Levee.  The amount of environmental impairment liability
insurance required hereunder may be adjusted at five-year intervals beginning
March 1, 2002, upon recommendation of the Port Commission and approval of the
Board of Public Service.  President shall give notice to the Port Authority
before December 31 preceding each adjustment date of the provisions of this
Section.  Such recommendation shall be made at least thirty (30), but no more
than sixty (60) days prior to expiration of each five-year period.  The amount
of environmental impairment liability insurance required shall not increase
more than twenty-five percent (25%) in any five-year period.  If no
recommendation is made by the Port Commission to adjust the amount of
insurance required for a five-year period prior to expiration of the previous
five-year period, or if the Port Commission recommendation is not approved by
the Board of Public Service, the amount of insurance required shall
automatically increase by fifteen percent (15%).

Any insurance policy which President is required to obtain pursuant to the
provisions of this Article shall provide that said policy may not be canceled
except upon the giving of thirty (30) days notice of such cancellation to the
Office of the Comptroller of the City of St. Louis.  In the event that
President receives notice that any policy which President is required to
obtain pursuant to the provisions hereof is to be canceled by the insurer,
President shall be required to obtain replacement insurance, and provide proof
thereof to the Comptroller's Office prior to the date that the cancellation
becomes effective.  The President shall notify or cause the insurance company
to notify the Comptroller's Office of the renewal of all insurance required
pursuant to the provisions of this Article or of the cancellation of same.

                                 ARTICLE XVI
                              EVENT OF DEFAULT

Section 16.1  Event of Default

The occurrence of any of the following shall constitute a material default and
breach of this Agreement by President (an "Event of Default"):

A.  if President fails to pay any Base Rent or Additional Rent or other
charges, or any part thereof, payable to the Port Authority hereunder, when
and as the same shall become due and such failure shall continue for ninety
(90) days after notice thereof from the Port Authority to President;

B.  if President shall sell, assign, pledge, mortgage, transfer, or sublet
this Agreement, the Levee, the Mooring Area, the Mooring Rights, or any part
thereof or any rights hereunder, in whole or in part, either voluntarily or by
operation of law, except as specifically authorized in this Agreement;

C.  if President is denied approval to relocate the Admiral to the Mooring
Area by the Commission, or if, after first obtaining such approval, President
for any reason ceases to be licensed to conduct a gambling operation pursuant
to the laws of the State of Missouri, or the License of President is suspended
or revoked, or an action is instituted to suspend or revoke any gaming related
license or approval held by President in any other jurisdiction or State and
such denial, revocation or suspension shall continue for more than thirty (30)

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continuous days; provided, however, President shall have the right to contest,
by appropriate proceedings, the denial, revocation or suspension of its
license in which event this Agreement shall remain in effect during the
pendency of any such proceeding, regardless of whether Gaming operations
continue during such pendency, and if, as a result of such proceedings or
during the pendency thereof, President's Gaming License is restored or
reactivated, then this Agreement shall continue in full force and effect;

D.  if President fails to maintain the insurance required by Article XIV
hereof and such failure shall continue for ninety (90) days after written
notice thereof from the Port Authority to President;

E.  if President shall fail continuously to operate its gaming business for
any reason for more than one (1) year;

F.  if President shall fail to observe, perform or comply, in any material
respect, with any of the terms., covenants and conditions in this Agreement or
the Relocation Funding Agreement other than those specified in subparagraphs
(A), (B), (C), (D) and (E) above (or which result from any of the events
therein referred to), and shall fail to remedy such default within ninety (90)
days after the receipt of written notice from the Port Authority specifying
the nature of such default, provided, however, that if any such default cannot
with due diligence be cured by President within ninety (90) days, and if
President commences to cure the default within ninety (90) days and diligently
prosecutes the cure to completion, then the ninety (90) day period shall be
extended for the period of time required for President to complete the cure.

Section 16.2  Remedies in the Event of Default

A.  Upon the occurrence of any Event of Default, the Port Authority, at its
option, shall have the right at any time thereafter, and without prejudice to
any other right or remedy the Port Authority may have hereunder, to declare
President's subleasehold Interest, this Agreement and all rights of President
under this Agreement as terminated, and President shall remain liable as
hereinafter provided; provided, however, anything herein to the contrary
notwithstanding, termination of the Mooring Rights shall be the sole and
exclusive remedy for any default referred to in Section 16.1(C), and, upon
exercising such remedy, President shall thereupon be relieved, as of the date
of termination of this Agreement, of any further liability or obligation
hereunder other than any such liability or obligation arising or relating to
events occurring prior to the effective date of such termination and those
obligations which survive termination as described in Section 18.2 hereof.
The City Counselor shall provide President with written notice specifying the
date of termination of this Agreement, which shall not be less than thirty
(30) days from the date of the notice.

Upon any such expiration or termination of President's Leasehold Interests and
this Agreement, but subject to the rights of any Leasehold or Subleasehold
Mortgagee, President shall quit and peacefully surrender the Mooring Area and
Levee to the Port Authority and to the City, respectively, and the Port
Authority and the City, upon any such expiration or termination, may without
further notice enter upon and re-enter the Mooring Area and Levee and possess
and repossess themselves thereof, by summary proceedings, ejectment or other

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appropriate suit, and may dispossess President and remove President persons
and property from the Mooring Area and Levee and have the right to hold and
enjoy the Mooring Area and Levee and receive all rental and other income
therefrom without payment of any kind to President, except that any amounts so
received by the City or the Port Authority shall be credited against amounts
otherwise due by President or the Port Authority, to the Port Authority or the
City hereunder.

B.  If the Port Authority shall terminate President's subleasehold Interests
and this Agreement, the Port Authority may recover from President, and
President shall immediately pay to the Port Authority all then accrued but
unpaid Base Rent and Additional Rent and other amounts then accrued under this
Agreement.

C.  If President's Leasehold Interests and this Agreement shall expire or be
terminated, or if the Mooring Area and Levee, or any part thereof shall be
abandoned by President, or shall become vacant during the term hereof, the
Port Authority or the City, as the case may be, may in its own name, or as
agent for President if President's Subleasehold Interests and this Agreement
not be terminated, but subject to the rights of any Subleasehold Mortgagee,
enter into possession of and relet the Mooring Area and Levee, or any part
thereof, or the Mooring Area and Levee with additional area, for such term or
terms (which may be greater or less than the period which would otherwise have
constituted the balance of the term of this Agreement) and on such conditions
as the Port Authority or the City, as the case may be, in its discretion, may
determine, and may collect and receive the rents therefor.

                                 ARTICLE XVII
                                 HOLDING OVER

Section 17.1  Holding Over

If the President remains in possession of the Mooring Area or Levee after the
expiration of the term for which it is leased and the President pays rent and
the Port  Authority accepts said rent, such possession shall be construed as
creating a month-to-month tenancy and not a renewal or extension of this
Agreement but such month-to-month tenancy shall not continue for more than one
(1) year.

                                ARTICLE XVIII
                            SURRENDER OF PREMISES

Section 18.1  Surrender of Premises

A.  Upon the expiration or earlier termination of the Mooring Lease Term
President agrees to quit and surrender the Mooring Area and Levee, (i) free
and clear of all liens and encumbrances and any and all hazardous substances,
spilled or discharged into or on the Mooring Area or Levee during the
President's tenancy and (ii) in the same condition and repair as on the Casino
Opening Date, ordinary wear and tear excepted, at the option of the Port
Authority.

B.  If requested by the Port Authority to do so, President shall execute,

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acknowledge and deliver to the Port Authority such instruments of further
assurance as in the reasonable opinion of the Port Authority or its counsel
are necessary or desirable to confirm or perfect the right, title and interest
of the Port Authority in and to all of the Mooring Area and Levee, and/or any
and all improvements or other property constructed, installed or placed within
or upon the Mooring Area and Levee, or within a public right-of-way and which
the Port Authority is to receive pursuant to this Agreement.

Section 18.2  Survival of President's Obligations

President's obligations under Sections 9.3, 12.4 and this Article XVIII shall
survive the expiration or earlier termination of the Mooring Lease Term.

                                 ARTICLE XIX
                           TERMINATION OF 1983 LEASE

Section 19.1  Termination

The City and S.S. Admiral Partners entered into a Lease Agreement dated as of
December 20, 1983, recorded in Book M939 page 338 in the Office of Recorder of
Deeds of the City of St. Louis, Missouri, which was amended and/or assigned by
Amendment and Assignment of Mooring Lease dated as of December 12, 1992,
Second Amendment to Lease Agreement dated as of June 19, 1992, Assignment of
Lease dated as of December 17, 1992 (as so assigned and amended to the date
hereof, the "1983 Lease").  President is the successor in interest to S.S.
Admiral Partners as the result of assignments.  The 1983 Lease shall remain in
full force and effect until the date the Admiral is moved to the Mooring Area,
as defined in this Agreement, whereupon the 1983 Lease shall be surrendered by
President, and shall terminate and be of no further force and effect.
President shall remain liable for any and all rents payable under the terms of
the 1983 Lease through the date the Admiral is moved to the Mooring Area.

                                  ARTICLE XX
                           MISCELLANEOUS PROVISIONS

Section 20.1  Coast Guard Certificate

President shall present to the Port Authority on an annual basis the Coast
Guard certificate of inspection, if any shall be required, obtained for the
Casino Project and a marine survey, if required by law, of the safety of the
facilities and improvements, including the Casino Project.

Section 20.2  Mooring of Vessels

All Gaming Vessels shall be moored within the Mooring Area in such a manner
and in such number so as not to violate any applicable permits obtained by
President from the U.S. Corps of Engineers.

Section 20.3  Auxiliary Craft

No auxiliary craft shall be moored permanently to any vessel within the
Mooring Area except for public safety reasons and maintenance; provided,
however, that maintenance craft shall be moored only during the period in

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which maintenance is taking place.

Section 20.4  Notices

All notices, demands, request or other communications ("notices") required or
permitted by this Agreement shall be in writing and shall be deemed to be
received (i) when actually received by any person at the intended address if
personally served, or (ii) on the next business day if sent by recognized and
reliable air or surface courier services, whether actually received or not, or
(iii) when sent by facsimile telecopy provided the equipment used can provide
a reliable written confirmation of receipt and provided an original copy is
delivered by mail; or (iv) three (3) business days after deposit in the United
States mail, certified mail, postage prepaid, return receipt requested,
addressed as follows:

If to Port Authority:   Port Authority of the City of St. Louis
                        1015 Locust Street, Suite 1200
                        St. Louis, MO  63101
                        Attention:  Executive Director
                        Telecopy No.:  (314) 231-2341

If to City:             Comptroller of the City of St. Louis
                        Room 212, City Hall
                        St. Louis, MO 63103
                        Telecopy No.:  (314) 622-4354

Copy to:                City Counselor
                        Room 314, City Hall
                        St. Louis, Missouri 63103
                        Telecopy No.:  (314) 622-4956

If to President:        President Riverboat Casino-Missouri, Inc.
                        802 North First Street
                        St. Louis, Missouri 63101
                        Attention:  Mr. John S. Aylsworth
                                    Mr. James A. Zweifel
                        Telecopy No.:  (314) 622-3172

Copy to:                Thompson Coburn LLP
                        One Mercantile Center
                        St. Louis, Missouri 63101
                        Attention:  Michael Lazaroff, Esq.
                        Telecopy No.:  (314) 552-7000

Any party hereto may, in substitution of the foregoing, designate a different
address or addresses within the continental United States for purposes of this
Section, or change address of those parties, or add additional parties
entitled to receive copies of notices, by written notice delivered to the
other party or parties in the manner prescribed, at least ten (10) days in
advance of the date upon which such change of address is to be effective.

Any notices relating to maintenance shall be given to those parties locally
responsible as hereinafter designated by the parties upon completion of the

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anticipated improvements.

Section 20.5  Entire Agreement

This Agreement sets forth the entire agreement between the parties.  There are
no understandings, agreements, statements, promises, representations or
warranties, express or implied, respecting the Mooring Area or Levee and this
Agreement (including, but not limited to the consideration to be paid by
President hereunder) which are not specified herein, except for the Relocation
Funding Agreement of even date among the parties hereto. This Agreement shall
not be modified, amended or supplemented except by a writing subscribed to by
the parties hereto, approved by the Board of Public Service, and authorized by
ordinance.

Section 20.6  Survival of Covenants

All representations, warranties and indemnities set forth in this Agreement
shall survive the execution hereof.

Section 20.7  Multiple Counterparts

This Agreement may be executed in a number of identical counterparts and if so
executed, each such counterpart is deemed an original for all purposes, and
all such counterparts shall collectively constitute one Agreement.

Section 20.8  Binding Effect

The terms, conditions, provisions and covenants of this Agreement shall run
with this Agreement and shall be binding on and inure to the benefit of the
parties hereto and their respective successors or assigns.

Section 20.9  Future Acts

In addition to the acts and deeds recited in this Agreement and contemplated
hereby, the parties hereto shall execute any and all additional agreements as
may be necessary to consummate the transactions contemplated by this
Agreement.

Section 20.10  Effective Date of Agreement

The Effective Date of this Agreement shall mean the date on which a copy of
this Agreement has been fully executed by the parties hereto and all changes
to the typewritten portion hereof initialed by all of the parties.

Section 20.11  Time of the Essence

Time is of the essence with respect to the performance of this Agreement and
each and every provision contained herein.

Section 20.12  Attorneys' Fees

In the event a dispute arising among the parties hereto, except as otherwise
provided herein, each party shall be responsible for payment of its own

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<PAGE> 185
attorneys' fees and court costs, if any, incurred in connection with such
dispute.

Section 20.13  Venue and Jurisdiction

Each party to this Agreement hereby submits to the jurisdiction of the State
of Missouri and the courts thereof for the purposes of any suit, action or
other proceeding arising out of or relating to this Agreement.  If and in the
event of a dispute arising hereunder, venue shall be vested in the Circuit
Court of City of St. Louis, State of Missouri, or, if jurisdiction exists, in
the Federal District Court sitting in St. Louis, Missouri.  President
acknowledges that it has negotiated this Agreement in the City of St. Louis,
Missouri, and has made numerous business contacts and entered agreements
relating to real estate and other matters sufficient to confer jurisdiction of
the courts of the City of St. Louis, State of Missouri.

If at any time during the term of this Agreement, President, or any successor
or assignee of President, is not a resident of the State of Missouri or has no
officer, director, employee or agent thereof available for service of process
as a resident of the State of Missouri, President or its successor or assignee
hereby designates the Secretary of State, State of Missouri, as its agent for
the service of process in any court action between it and the City and/or the
Port Authority or arising out of or relating to this Agreement.

Section 20.14  Authorization and Capacity

The parties hereto represent to each other that each has the full right, power
and authority to enter into this Agreement and to fully perform its
obligations.  The persons executing this Agreement warrant and represent that
each has the authority to execute in the capacity stated and to bind the
parties hereto.

Section 20.15  Non-Severability

All provisions of this Agreement are material and substantive and therefore,
if any provision of this Agreement or the application thereof to any person or
circumstance shall to any extent be held void or invalid, then the entire
Agreement shall be held invalid and of no force and effect.  Notwithstanding
anything contained herein to the contrary, in the event that this Agreement is
held invalid, President shall remain liable to the Port Authority and the Port
Authority to the City for the payment of all Gaming Rent owed hereunder for
the period during which President was in possession of the Mooring Area and
President shall promptly remove the Casino Project and other Improvements in
accordance with, and subject to, the provisions of Article XVIII.

Section 20.16  Non-Waiver

Failure by either party hereto, at any time, to require the performance by the
other of any term of this Agreement, shall not in any way affect the right of
either party to enforce such terms, nor shall any waiver by either party of
any term hereof be taken or held to be a waiver of any other provision of this
Agreement.  No waiver of any term or provision of this Agreement shall be
effective unless the same is in writing, signed by the parties hereto.

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<PAGE> 186
Section 20.17  Governing Law

This Agreement is entered into in the State of Missouri and shall be
construed, enforced and governed, as to both validity and performance, in
accordance with the laws of the State of Missouri and all of the rights and
obligations of the parties hereunder shall be determined in pursuant to the
laws of the State of Missouri.

Section 20.18  Memorandum of Lease

Upon execution of this Agreement (or as soon thereafter as legal descriptions
of and the Mooring Area are available), the parties hereto shall execute a
Memorandum of Lease in recordable form and President shall, at its own
expense, have such Memorandum of Lease recorded in the Office of the Recorder
of Deeds for the City of St. Louis and have the Register of the City of St.
Louis make a microfilm copy hereof.  In no event shall such Memorandum be
deemed to modify or to change any of the provisions of this Agreement.

Section 20.19  Perpetuities Savings Clause

To the extent any of the interests in real estate granted, leased, demised or
conveyed hereunder are deemed contingent or otherwise not vested, for any
reason, the same shall vest, if at all, not later than 21 years (less one day)
after the death of the last to die of all currently living descendants of
Joseph P. Kennedy, deceased, father of the late President of the United
States, John F. Kennedy, and if not so vested on or prior to said date, shall
terminate and be of no further force or effect whatsoever.

Section 20.20  Modification for Municipal Purposes

A.  The City, subject to the rights of the holders of any leasehold or
subleasehold deed of trust, reserves the right to modify, amend or cancel this
Agreement in the event that all or any portion of the Mooring Area is needed
by the City for right-of-way, sewer, floodwall, or floodwall construction
purposes or any other emergency or extraordinary municipal purposes or uses.
The City, subject to the rights of the holders of any leasehold or
subleasehold deed of trust, shall have the right to modify, amend or cancel
this Agreement upon one (1) year's written notice thereof to President and to
eliminate such portion of the Mooring Area as shall be needed by the City for
municipal purposes.  In such event, it is agreed and understood by President
that no claim or action for damages or other compensation shall arise or be
allowed by reason of such termination or modification.

B.  If this Agreement is amended or modified under the provisions of this
Section 20.20, the Base Rent for the Mooring Area shall be adjusted in direct
proportion to the change made in the Mooring Area.  If the remaining area is
not suitable to the President, President shall have the right to terminate its
rights and obligations under this Agreement without penalty by written notice
to the City within ninety (90) days after receipt of the notice to modify or
amend this Agreement (however, all other rights of the other parties hereto
shall survive any such termination).

C.  In the event the President's rights and obligations under this Agreement

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<PAGE> 187
are canceled, modified or amended under the provisions of this Section 20.20,
the City shall cause President to be reimbursed for the depreciated cost of
the non-removable capital improvements President has made and paid for and
which capital improvements have been made pursuant to the written approvals of
the City.  It is agreed and understood that the term "capital improvements"
shall not include wharf boats, vessels (including but not limited to Gaming
Vessels) or other floating or transferable stationary improvements unless
permanently affixed to real estate.  Such reimbursement shall be made by or as
part of the cost of the intended new use. Reimbursement will not be based on
anticipated profits from the operation of President's business, and no funds
from the City's general revenue shall be used for this purpose.  Whether or
not President has "paid for" said improvements shall be determined by
reference to the Relocation Funding Agreement and the amounts actually paid by
President thereunder.

D.  Nothing herein shall be deemed or construed to be a limitation or
restriction upon the condemnation authority of the City or the Port Authority.

Section 20.21  Consent to Leasehold Deed of Trust

Pursuant to the terms of the Relocation Funding Agreement, the Port Authority
will enter into a Loan Agreement with Mercantile Bank National Association
("Mercantile"), pursuant to which the Port Authority will issue a Promissory
Note in the amount of Two Million Four Hundred Thousand Dollars
($2,400,000.00) to Mercantile, enter into a Loan Agreement with Mercantile,
and grant a Future Advance Leasehold Deed of Trust to a Trustee for
Mercantile, all of which documents are appended as exhibits to the Relocation
Funding Agreement.  To the extent that the contemplated encumbrance of the
leasehold and any conveyance to a purchaser at foreclosure may be deemed
assignments or transfers of this Agreement, such encumbrance and conveyance
are hereby approved by the City and the Port Authority and the approval of the
Board of Public Service shall be evidenced by its signature on an endorsement
to this Agreement.

The City, the Port Authority and the Board of Public Service further consent
to the grant by President of a subleasehold deed of trust of the areas five
feet in diameter around each of the points where mooring lines connect the
Admiral to the Levee in order that the holders of any ship mortgage of the
Admiral may perfect a real estate lien in the event that the Admiral should be
deemed real estate by virtue of its stationary mooring, provided that such
subleasehold deed of trust shall be of no further effect one year after the
declaration of a default by the holder thereof.

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of
the date first above written.

                                    LESSOR:

                                    CITY OF ST. LOUIS

ATTEST:                             By: /s/ Clarence Harmon
                                       ---------------------------------------

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<PAGE> 188
                                       MAYOR

/s/ Rita Kropf                      By: /s/ Darlene Green
------------------------------         ---------------------------------------
CITY REGISTER                          COMPTROLLER

                                    APPROVED AS TO FORM ONLY:

                                        /s/ Thomas J. Ray
                                    ------------------------------------------
                                       CITY COUNSELOR

                                    LESSEE/SUBLESSOR:

ATTEST:                             PORT AUTHORITY OF THE CITY OF ST. LOUIS

                                    By: /s/ James W. Suelmann
/s/ Mary Giammaneo                     ---------------------------------------
------------------------------      Its: Chairman
                                       ---------------------------------------

                                    APPROVED AS TO FORM ONLY:
                                       /s/ Thomas G. Pike
                                    ------------------------------------------
                                       COUNSEL, PORT AUTHORITY OF
                                       THE CITY OF ST. LOUIS

                                    SUBLESSEE:

ATTEST:                             PRESIDENT RIVERBOAT CASINO-MISSOURI,
                                    INC., a Missouri corporation

/s/ Ralph J. Vaclavik               By: /s/ James A. Zweifel
------------------------------         ---------------------------------------
                                       Executive Vice President and
                                       Chief Financial Officer

THE BOARD OF PUBLIC SERVICE OF THE CITY OF ST. LOUIS hereby approves the
foregoing Agreement, including Article XIX thereof which amends the Lease
Agreement dated December 20, 1983, between the City of St. Louis and S.S.
Admiral Partners, as assigned and amended.

                                    THE BOARD OF PUBLIC SERVICE OF THE CITY
                                    OF ST. LOUIS

                                    32

<PAGE> 189
                                    By: /s/ Ernest J. Harrell
                                       ---------------------------------------
                                       Chairman

                                    APPROVED AS TO FORM ONLY:

                                       /s/ Thomas J. Ray
                                    ------------------------------------------
                                       City Counselor

                                  EXHIBIT 1

                               PERCENTAGE RENT

1.  Two percent (2%) of Adjusted Gross Receipts for any Lease Year equal to or
less than Eighty Million Dollars ($80,000,000.00); plus

2.  Three percent (3%) of that portion of Adjusted Gross Receipts for such
Lease Year which exceed Eighty Million Dollars ($80,000,000.00) but which are
equal to or less than One Hundred Million Dollars ($100,000,000.00); plus

3.  Four percent (4%) of that portion of Adjusted Gross Receipts for such
Lease Year, if any, which exceed One Hundred Million Dollars
($100,000,000.00).

                                  EXHIBIT 2

A tract of land lying East of block 17 and block 18 of the City of St. Louis,
Missouri.  Said tract of land being more particularly described as follows:

Commencing at a cross, being the intersection of the North right-of-way line
of Dr. Martin Luther King Drive (32'-1" wide) and the West right-of-way line
of Leonor K. Sullivan Blvd. (Also known as Wharf St.); thence, along the
prolongation of the North right-of-way of Dr. Martin Luther King Drive, South
80 degrees 11 minutes 21 seconds East a distance of 100.55 feet to a point on
the East curb line of Leonor K. Sullivan Blvd., being the point of beginning;
thence along said East curb line, North 05 degrees 36 minutes 52 seconds East
a distance of 595.13 feet; thence North 03 degrees 10 minutes 26 seconds East
a distance of 204.87 feet to a point at the South end of the floodwall closure
(C-18), said point being South 80 degrees 11 minutes 21 seconds East a
distance of 59.49 feet from the West right-of-way line of Leonor K. Sullivan
Blvd.; thence, departing from said East curb line, South 84 degrees 23 minutes
01 seconds East a distance of 150.14 feet; thence, along a line 150 feet
parallel with the said East curb line, South 03 degrees 10 minutes 26 seconds
West a distance of 201.67 feet; thence South 05 degrees 36 minutes 52 seconds
West a distance of 598.33 feet; thence North 84 degrees 23 minutes 08 seconds
a distance of 150.00 feet to the point of beginning.

Said tract of land containing 120,000 square feet.

                                  EXHIBIT 3

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<PAGE> 190
Eight Hundred Feet Mooring Rights (800') commencing at the South End of the
Floodwall Closure Structure (C-18) along Leonor K. Sullivan Boulevard, Station
16+36, with a line perpendicular to the floodwall  at that location, extending
toward the Mississippi River, south 800 linear feet.  No vessel(s) moored in
the above mentioned area will be permanently moored within fifty feet (50') of
the Martin Luther King Bridge.  The above mooring area containing 800 linear
feet.

                                  EXHIBIT 4

                   SITE PLAN SHOWING PROPOSED IMPROVEMENTS

                                    [MAP]

                                    34

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