Document:

<Page>

                                                                    Exhibit 10.3

                          PUBLIC TRUST TIDELANDS LEASE

STATE OF MISSISSIPPI
COUNTY OF HARRISON

     THIS LEASE AGREEMENT ("LEASE") is made and entered into as of and effective
the 27th day of October, 2003 ("BEGIN DATE") by and between

          THE STATE OF MISSISSIPPI,
             by the Secretary of State
             with the approval of the Governor,              ("LESSOR")

          AND

          PREMIER ENTERTAINMENT, LLC,
             a Mississippi Limited Liability Company,        ("LESSEE").

     IN CONSIDERATION of the rent, for the term and upon the covenants,
conditions, and obligations herein provided, all to be observed and performed by
LESSEE, LESSOR does hereby lease unto LESSEE, pursuant to the authority of MISS.
CODE ANN. Section 29-1-107(2) (1972), as amended, the following described
submerged lands or tidelands:

          COMMENCE at the northeast corner of Harbor View Condominiums, Biloxi,
     Harrison County 2nd Judicial District, Mississippi as per the map or plat
     thereof on file in the office of the Chancery Clerk at the Court House in
     Biloxi, Harrison County 2nd Judicial District and run South 00 degrees 31
     minutes 32 seconds East for 239.05 feet; thence run North 89 degrees 28
     minutes 33 seconds East for 3.66 feet; thence run South 00 degrees 23
     minutes 59 seconds East for 124.18 feet; thence run South 83 degrees 11
     minutes 02 seconds East for 1.20 feet; thence run South 01 degree 44
     minutes 55 seconds East for 16.59 feet; thence run South 89 degrees 00
     minutes 06 seconds West for 1.16 feet to and for the POINT OF BEGINNING.

          From said POINT OF BEGINNING run South 89 degrees 00 minutes 06
     seconds West for 100.62 feet; thence run North 07 degrees 17 minutes 25
     seconds West for 5.98 feet; thence run North 49 degrees 17 minutes 42
     seconds West for 9.81 feet; thence run South 89 degrees 20 minutes 48
     seconds West for 220.99 feet; thence run North 42 degrees 47 minutes 11
     seconds West for 134.86 feet; thence run North 50 degrees 24 minutes 44
     seconds West for 159.85 feet; thence run North 38 degrees 12 minutes 35
     seconds West for 27.81 feet; thence run South 00 degrees 32 minutes 57
     seconds East for 559.19 feet to the north line of the Biloxi Channel;
     thence run South 88 degrees 06 minutes 44 seconds East

<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

     along said north line of the Biloxi Channel for 559.07 feet; thence run
     North 00 degrees 23 minutes 25 seconds West for 346.84 feet back to the
     POINT OF BEGINNING, containing 219,045.47 square feet or 5.029 acres. (See
     EXHIBIT 2.)

     The above-described submerged lands or tidelands are hereinafter referred
     to as "LEASE PREMISES".

1.   LEASE TERM AND RENEWAL.

     1.1  The primary term of this LEASE shall be thirty (30) years beginning on
BEGIN DATE. The first "LEASE YEAR" shall begin on BEGIN DATE and each LEASE YEAR
thereafter will begin on each succeeding anniversary of BEGIN DATE.

     1.2  If at the expiration of the primary term, LESSEE holds the right to
occupy and use the adjoining uplands and has faithfully complied with all terms,
covenants, conditions, and obligations of this LEASE, then LESSEE shall have the
option to renew this LEASE for a secondary term of twenty (20) years on such
terms and provisions as may then be agreed upon by LESSOR and LESSEE.

     1.3  If at the expiration of the secondary term, LESSEE holds the right to
occupy and use the adjoining uplands and has faithfully complied with all terms,
covenants, conditions and obligations of the LEASE as renewed, then LESSEE shall
have the prior right, exclusive of all other persons, to re-lease LEASE PREMISES
at the expiration of the secondary term on such terms and provisions as may then
be agreed upon by LESSOR and LESSEE.

     1.4  It is expressly agreed and understood that during the secondary term
of this LEASE and during the term of any future leases entered pursuant to
Paragraph 1.3 LESSEE shall fully comply with all laws of the State of
Mississippi governing the leasing of submerged lands and tidelands in effect at
the time of renewal or re-leasing.

2.   USE OF LEASE PREMISES.

     2.1  LESSOR and LESSEE acknowledge and agree that LESSEE will use LEASE
PREMISES only for the purpose of (a) the construction and thereafter operation
of a duly licensed gaming vessel (including food and beverage sales and services
and entertainment in a setting where the primary activity is gaming, or food or
beverage service) ("CASINO"), and (b) at LESSEE'S option, the development and
operation of a recreational marina (each a "USE" and collectively, "USES").

     2.2  Without limitation, the operation of hotel facilities, parking
facilities, theater facilities or facilities designed primarily for retail
shopping, conferences, shows or exhibitions is expressly prohibited on LEASE
PREMISES.

     2.3  Gaming, the operation of gaming devices or gaming operations of any
kind whatsoever are prohibited on LEASE PREMISES during construction of LESSEE'S
facilities on LEASE PREMISES and prior to the time that LESSEE commences
business operation of its CASINO and the first rent installment required in
Paragraph 3.4 is paid to LESSOR.

3.   RENT

                                  Page 2 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

     3.1  The obligation of LESSEE to pay rent under this LEASE is
unconditional, and the rent shall not be subject to set off for any reason or
cause. LESSOR and LESSEE agree that any rent paid during the term of this LEASE
is not refundable, and LESSOR waives any right or claim it may have to refund of
rent paid under this LEASE.

     3.2  For the period from BEGIN DATE to the "OPEN DATE," being the earlier
of June 1, 2006 or the first day of the calendar month in which LESSOR commences
business operation of its CASINO on LEASE PREMISES, LESSOR shall pay an annual
rent of twenty-one thousand nine hundred and no/100ths dollars ($21,900.00).
Said rent shall first be due and payable at the time this LEASE is executed and
thereafter annually in advance of each anniversary of BEGIN DATE in the manner
provided in Paragraph 3.5.

     3.3  Effective as of the OPEN DATE, the annual rent shall be fixed at the
fair market rent as determined by an appraiser selected by LESSOR. Said
appraiser shall meet and observe the standards and qualifications set forth for
appraisers in Paragraphs 4.3 and 4.4. Thereafter the rent will be periodically
reviewed and adjusted as provided in Paragraph 4.

     3.4  (a)  For the Lease Year in which OPEN DATE falls, LESSOR may pay the
annual rent set in Paragraph 3.3 in four (4) equal installments, as follows

     First Installment:      1/4th of Rent payable on or before OPEN DATE
     Second Installment:     1/4th of Rent payable on or before OPEN DATE plus
                             30 days
     Third Installment:      1/4th of Rent payable on or before OPEN DATE plus
                             60 days
     Fourth Installment:     1/4th of Rent payable on or before OPEN DATE plus
                             90 days.

Provided however, LESSEE shall pay all rent due for the LEASE YEAR in which OPEN
DATE falls prior to the last day of said LEASE YEAR.

          (b)  If OPEN DATE and the anniversary of BEGIN DATE do not coincide,
the annual rent for the period following OPEN DATE to the end of that LEASE YEAR
shall be prorated. LESSOR shall pay the annual rent for each LEASE YEAR
thereafter, in advance, on or before each anniversary of BEGIN DATE.

     3.5  All rent under this LEASE is payable to the order of the Mississippi
Secretary of State. Payments shall be delivered to the attention of the
Assistant Secretary of State for Public Lands in the Office of the Secretary of
State in Jackson, Mississippi. The address for delivery by courier is 401
Mississippi Street, Jackson, Mississippi 39201-1004. The address for delivery by
United States Mail is Post Office Box 136, Jackson, Mississippi 39205-0136.
Payments for annual rent shall not be considered made until actually received in
the Public Lands Division of the Office of the Secretary of State in Jackson,
Mississippi.

     3.6  If any sum required to be paid under this LEASE is not made within
thirty (30) days of the due date, LESSOR shall be assessed and pay a penalty of
twelve percent (12%) per annum on any such sum from the date due until paid. The
penalty for any such late payment shall each month be added to the unpaid amount
and thereafter shall be deemed to be a part of the past due sum. If upon
cancellation or termination of this LEASE for any reason, LESSOR has

                                  Page 3 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

not paid all sums required to be paid under this LEASE, said penalty shall
continue to be assessed against any sums owed by LESSOR until paid.

     3.7  LESSOR and LESSEE agree that consideration for this LEASE is in part
predicated on LESSOR developing and operating on LEASE PREMISES a single CASINO
licensed by the State of Mississippi which will contain among other things,
approximately 1,550 games, tables and slot machines and approximately 50,000
square feet of gaming space as reported to the Mississippi Gaming Commission.
Should LESSOR desire to expand the gaming area within its CASINO beyond
approximately 1,550 games, tables and slot machines, or approximately 50,000
square feet of gaming space, notice shall first be given to LESSOR and a
corresponding adjustment to the annual rent shall be made in the event
reappraisal by LESSOR shows that such expansion resulted in an increase in the
fair market rent. In such case, the adjustment to the annual rent shall be fixed
by an appraiser selected by LESSOR. Said appraiser shall meet and observe the
standards and qualifications set forth for appraisers in Paragraphs 4.3 and 4.4.

4.   RENT ADJUSTMENT.

     4.1  (a)  LESSOR shall, at the end of each five (5) year period from and
after BEGIN DATE during the primary and secondary terms of this LEASE, determine
the annual rent for the following five year period in accordance with MISS. CODE
ANN. Section 29-1-107(2) (1972) as amended, or such other applicable statute as
may then be in effect.

     4.1  (b)  If LESSOR determines that the rent for the ensuing five (5) year
period should be fixed by adjusting the current rent by the increase in the All
Urban Consumer Price Index--all items ("CPI"), then LESSOR shall calculate the
amount of the rent adjusted by the CPI and notify LESSOR, and the rent for the
ensuing five (5) year period shall be fixed as adjusted by the CPI. Said rental
amount shall be calculated by multiplying the last effective annual rent in the
final year of the preceding five (5) year period by a fraction, having as its
numerator the monthly CPI index number for the first calendar month of the five
(5) year period during which the adjustment is to take effect, and as its
denominator the monthly CPI index number for the first calendar month of the
preceding five (5) year period.

     4.1  (c)  If not adjusted by the CPI, LESSOR shall review and adjust rent
by obtaining an appraisal of the fair market rent for LEASE PREMISES from an
appraiser of its own choosing and shall furnish LESSEE with a copy of the
appraisal. LESSEE may accept the adjusted rent in LESSOR'S appraisal, and the
rent for the ensuing five (5) year period shall be fixed at the amount stated in
LESSOR'S appraisal.

     4.1  (d)  If LESSEE provides written notice to LESSOR within thirty (30)
days after receipt of LESSOR'S appraisal that LESSEE does not agree with the
rent determined by LESSOR'S appraiser, LESSEE shall have the right to select an
appraiser to conduct a second appraisal of the fair market rent for LEASE
PREMISES. Such notice by LESSEE shall not be effective unless the notice
contains the name of LESSEE'S appraiser and evidence of a commitment by said
appraiser to complete LESSEE'S appraisal within sixty (60) days from the date of
LESSEE'S notice to LESSOR. LESSEE'S appraisal shall be completed and a copy
promptly furnished to LESSOR'S appraiser within sixty (60) days after LESSEE
provides the foregoing written notice to LESSOR. LESSOR'S appraiser and LESSEE'S
appraiser shall make a good faith effort to resolve any

                                  Page 4 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

differences in their respective appraisals and, by mutual agreement, fix the
annual rent for this LEASE for the ensuing, five (5) year period.

     4.1  (e)  If LESSOR'S appraiser and LESSEE'S appraiser cannot agree on the
appraised fair market rent for LEASE PREMISES within thirty (30) days after the
completion of LESSEE'S appraisal, LESSOR'S appraiser and LESSEE'S appraiser
shall select a third appraiser. The third appraiser shall conduct and prepare an
independent appraisal of the fair market rent for LEASE PREMISES. The third
appraisal of LEASE PREMISES shall be completed and a copy thereof promptly
furnished to LESSOR'S and LESSEE'S appraisers within sixty (60) days after the
third appraiser is selected. The appraised fair market rent determined by the
agreement of any two of the three appraisers within thirty (30) days after
completion of the third appraisal shall constitute the rent for the ensuing five
(5) year period.

     4.1  (f)  In the event that (a) LESSEE fails to give the proper notice to
LESSOR within thirty (30) days after receipt of LESSOR'S appraisal that LESSEE
does not agree with the fair market rent determined by LESSOR'S appraiser, or
(b) LESSEE'S appraiser fails to complete his appraisal and furnish a copy to
LESSOR'S appraiser within the time allowed, or (c) the third appraiser fails to
complete his/her appraisal and furnish copies to LESSOR'S and LESSEE'S
appraisers within the time allowed, or (d) two of the three appraisers fail to
agree on the fair market rent within the time allowed, then the annual rent for
the ensuing five (5) year period shall be automatically and finally fixed at the
amount set in the appraisal prepared by LESSOR'S appraiser.

     4.1  (g)  In any event, the adjusted annual rent shall be the greater of
the amount determined by the aforesaid appraisal procedure or the amount as
adjusted by the CPI. However, in no event, shall the adjusted annual rent for
any five (5) year period of the LEASE term be less than the amount fixed as the
annual rent effective as of OPEN DATE as provided in Paragraph 3.3.

     4.2  LESSOR and LESSEE each agree to cooperate and use good faith and
diligent efforts to complete the foregoing appraisal procedure at the beginning
of the five (5) year period for which the adjusted rent is being determined. If
for any reason the rent adjustment procedure by appraisal as set forth in
Paragraphs 4.l(a)-(g) is not completed prior to the beginning of the ensuing
five year period, LESSOR and LESSEE agree that the interim annual rent pending
completion of the appraisal procedure shall be equal to the last effective
annual rent for the final LEASE YEAR of the preceding five (5) year period as
adjusted by the All Urban Consumer Price Index-all items in the manner provided
in Paragraph 4.1(b). If the fair market rent finally fixed by the appraisal
procedure is in excess of the interim annual rent, LESSEE shall pay to LESSOR
such excess within thirty (30) days after the appraisal procedure is completed.

     4.3  LESSOR and LESSEE acknowledge and agree that any appraisal made for
the purpose of determining fair market rent for LEASE PREMISES will deduct the
value of any improvements owned by LESSEE which substantially enhance the value
of LEASE PREMISES.

     4.4  All appraisers employed for purposes of review and adjustment of rent
under this LEASE shall be Members of the Appraisal Institute ("MAl"
designation), shall be disinterested and shall have no personal interest or bias
with respect to LESSOR or to LESSEE or with respect to any of the other selected
appraisers. All such appraisers shall act independently and shall not be

                                  Page 5 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

compensated on any basis that is contingent on a particular result or outcome or
on any action or event resulting from any analysis, opinions or conclusions
contained in such appraiser's appraisal. Each appraiser, whether employed by
LESSOR or LESSEE or selected by LESSOR'S and LESSEE'S appraisers, shall act in
good faith and in accord with the highest professional standards, and each shall
endeavor to accurately and fairly determine the true fair market rent for LEASE
PREMISES without favor or bias toward the interests of either LESSOR or LESSEE.

     4.5  LESSEE agrees to furnish gross gaming revenues and total patrons as
reported to the Mississippi Gaming Commission to all appraisers employed to
perform appraisals pursuant to the terms and provisions of this LEASE.
Information will be furnished for the periods requested by said appraisers. '

     4.6  LESSOR shall pay for its appraiser, LESSEE shall pay for its
appraiser, and LESSOR and LESSEE shall share the cost of the third appraiser
equally.

     4.7  In the event LESSOR and LESSEE cannot agree on an adjusted rental
amount, the Lease may be canceled at the option of LESSOR .

5.   TAXES, SURVEY COSTS, RECORDING FEES.

     LESSEE covenants and agrees to pay any and all ad valorem taxes and special
assessments levied by any county or municipality applicable to LEASE PREMISES
and LESSEE'S interest therein and improvements thereon, provided if LESSEE shall
first pay the full amount of any such taxes or assessments, then LESSEE shall
have the right to contest such taxes and assessments in the manner provided by
law without such contest constituting a default under this LEASE. Further,
LESSEE covenants and agrees to pay any and all survey costs and recording fees
in connection with this LEASE or any other reasonable fees directly incurred by
LESSOR in administering or enforcing this LEASE or so determined by applicable
law.

6.   TRANSFERABILITY OF LEASE.

     6.1  Except as provided in Paragraphs 6.2 and 11.1, LESSEE shall not
sublease, assign, or transfer its rights or obligations, in whole or in part,
under this LEASE without the prior written permission of LESSOR, which
permission shall not arbitrarily or unreasonably be withheld. Without
limitation, it shall not be deemed arbitrary or unreasonable if LESSOR refuses
permission to assign or transfer this LEASE at any time LESSEE is in default of
any provision of this LEASE.

     6.2  The restriction on transfer and assignment of this LEASE in Paragraph
6.1 shall not apply to any future assignment by LESSEE to a successor
organization in a merger, consolidation or similar reorganization, nor shall it
apply to an assignment or other transfer to an entity that controls, is
controlled by or is under common control with LESSEE, provided the transferee or
assignee shall immediately assume full performance of all past and future duties
and obligations of transferring LESSEE under this LEASE, and provided the
transferring or assigning LESSEE shall remain liable for full performance of all
duties and obligations under this LEASE until such time as transferring or
assigning LESSEE is expressly released in writing from such duties and
obligations by LESSOR. LESSEE agrees to notify LESSOR of any such future
assignment or transfer within thirty (30) days of same.

                                  Page 6 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

     6.3  Assignment and transfer of this LEASE by LEASEHOLD MORTGAGEE are
governed by Paragraph 25 of this LEASE.

7.   PUBLIC ACCESS ASSURED.

     7.1  LESSEE agrees to maintain free public access to the open water portion
of LEASE PREMISES subject to rules and regulations reasonably necessary to
ensure the safety and convenience of all users. LESSEE may prohibit boats from
anchoring to its gaming vessel or its moorings. This provision shall not be
deemed or construed to permit public access to the gaming vessel or area beneath
the gaming vessel. Further, this provision does not grant or permit public
access to LESSEE recreational marina on LEASE PREMISES except with respect to
those portions of the recreational marina, if any, designated for use by the
public.

     7.2  LESSEE'S agreement to maintain the free public access to the open
water portion of LEASE PREMISES shall not be deemed or construed as an agreement
or assumption of any responsibility or liability with respect to any such public
access afforded hereunder.

8.   DEFAULT, CANCELLATION OR FORFEITURE.

     8.1  The parties herein expressly agree that in the event of any default
under this LEASE which can be cured solely by the payment of a liquidated sum of
money including, but not limited to, the payment of any tax, assessment or rent
due under this LEASE, then it shall be lawful for LESSOR, either with or without
process of law, to enter and repossess LEASE PREMISES if such default is not
cured by LESSEE within thirty (30) days after written notice to LESSOR and to
distrain for any rent, assessment or other sum due under this LEASE at the sole
election of LESSOR. If LESSOR elects the remedy of re-entry and repossession,
then LESSOR agrees to peaceably surrender possession of LEASE PREMISES to LESSOR
in the manner provided in Paragraphs 26.6 and 26.7. However, nothing herein is
to be deemed or construed to mean that LESSOR, in electing one remedy or another
available to LESSOR, shall not be permitted to hold LESSOR liable for any unpaid
rent, assessment or other sums due to the time of LESSOR'S re-entry and
repossession of LEASE PREMISES. LESSEE shall be liable for the payment of all
reasonable attorney's fees, expenses and costs of LESSOR required for the
collection of any sums due under this LEASE. For purposes of this LEASE any ad
valorem tax or assessment due any county or municipality applicable to LEASE
PREMISES not contested in the manner provided by law and the annual rent as
determined under Paragraphs 3 and 4 shall be deemed to be a liquidated sum.

     8.2  LESSEE'S default under any other material provisions of this LEASE
which cannot be cured solely by the payment of a liquidated sum of money, as
provided in Paragraph 8.1, shall result, at the option of LESSOR, in the
cancellation of this LEASE after thirty (30) days written notice of default to
LESSEE, if such default is not cured by LESSEE within said thirty (30) day
period. However, the period of time for curing any such default may be extended
for a reasonable period not to exceed one hundred and eighty (180) days from
date of notice of default if (a) there is a reasonable probability that such
default can be cured within a reasonable time, (b) LESSEE continuously persists
in a diligent, good faith effort to cure such default, and (c) during aforesaid
thirty (30) day period, LESSEE undertook and maintained a diligent, good faith
effort to cure such default and the failure to cure such default was not the
fault of LESSEE. Any further extension of time beyond one hundred and eighty
days (180) shall only be granted upon mutual

                                  Page 7 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

written agreement of LESSOR and LESSEE. LESSEE shall be liable for the payment
of all reasonable attorney's fees, expenses and costs of LESSOR incurred in the
enforcement of this Paragraph 8.2.

     8.3  As to all other conditions, covenants, and obligations imposed on
LESSEE under this LEASE not subject to Paragraph 8.1 or 8.2, enforcement shall
be by proceeding at law or in equity to restrain violation and to recover
damages, if any, including reasonable expenses of litigation and reasonable
attorney's fees, as may be awarded by the court. Such enforcement by proceedings
at law or in equity may be instituted after thirty (30) days written notice to
LESSEE if the default or violation has not been cured within that thirty (30)
day period. However, the period of time for curing any such default may be
extended for a reasonable period not to exceed one hundred and eighty (180) days
from date of notice of default if (a) there is a reasonable probability that
'such default can be cured within a reasonable time, (b) LESSEE continuously
persists in a diligent, good faith effort to cure such default, and (c) during
aforesaid thirty (30) day period, LESSEE undertook and maintained a diligent,
good faith effort to cure such default and the failure to cure such default was
not the fault of LESSEE. Any further extension of time of more than one hundred
and eighty (180) days shall only be granted upon mutual written agreement of
LESSOR and LESSEE.

9.   IMPROVEMENTS AND MAINTENANCE.

     9.1  Commencing after BEGIN DATE, LESSEE will construct, operate and
maintain all improvements on LEASE PREMISES as shown on EXHIBIT 1 attached
hereto. LESSEE hereby consents to LESSEE'S development and operation of
improvements as shown on EXHIBIT 1. Prior to OPEN DATE, LESSEE may modify its
site plan shown on EXHIBIT 1, provided such modifications (a) are consistent
with USES allowed under this LEASE, (b) will not result in excess coverage of
open water area of LEASE PREMISES contrary to Paragraph 10.2, (c) do not violate
any local, state or federal law or regulation, (d) are approved by all necessary
permitting authorities, and (e) are not inconsistent with or prohibited by any
term or provision of this LEASE. LESSEE agrees to provide LESSOR with a complete
description of any such improvements, modification or additions.

     9.2  LESSOR acknowledges that the improvements which exist on the effective
date of this LEASE on LEASE PREMISES are not the property of LESSOR. LESSOR
acknowledges that all improvements constructed by LESSEE on LEASE PREMISES as
provided in Paragraph 9.1 shall be owned by LESSEE.

     9.3  All improvements, modifications or additions to improvements on LEASE
PREMISES shall be constructed in a workmanlike manner and shall be operated and
maintained at LESSEE'S expense. LESSEE shall maintain LEASE PREMISES and all
improvements thereon in a good state of repair and in a clean, orderly, and
attractive condition with due regard to public health and safety.

     9.4  LESSEE recognizes that LESSOR has a public interest in establishing
and maintaining an attractive view of the waterfront on the Mississippi Gulf
Coast from the waterside. Accordingly, LESSEE agrees that the east, west and
south facing elevations of

                                  Page 8 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

LESSEE'S improvements on LEASE PREMISES shall be constructed and maintained for
visual and aesthetic appeal.

10.  RESTRICTIONS ON USE.

     10.1 LESSEE shall comply with any and all applicable federal, state, county
or city laws, statutes, regulations, building codes, building requirements,
safety or conservation regulations, fire codes, ordinances, environmental and
health laws and regulations, zoning regulations and permits (collectively
"RESTRICTIONS"); if LESSEE is charged with a violation of such RESTRICTIONS and
the violations complained of do not pose an immediate threat to the public
health or safety or damage to or destruction or waste of LEASE PREMISES, then
LESSEE shall have the right to contest a complaint of violation of such
RESTRICTIONS in the manner provided by law, without such contest constituting a
default under this LEASE. However, nothing herein shall be deemed or construed
to prohibit or limit LESSOR'S right to take any action available in equity or
law to protect LEASE PREMISES and adjoining State property from damage, waste or
destruction.

     10.2 LESSEE specifically agrees to comply with the ordinances of the City
of Biloxi or to obtain appropriate variances, copies of which will be provided
to LESSOR. LESSEE further agrees not to cover more forty-five percent (45%) of
the surface area of LEASE PREMISES with structures or other improvements of any
kind in order to maintain at least fifty-five percent (55%) of the surface area
of LEASE PREMISES as open water.

     10.3 LESSEE shall not under the terms of this LEASE construct any building,
structure or pier of any type on State property adjacent to or adjoining LEASE
PREMISES.

     10.4 LESSOR acknowledges that LESSEE plans to enter into a lease with the
City of Biloxi and/or the Biloxi Port Commission of certain ground, easement,
and/or air rights to property adjoining the LEASE PREMISES.

11.  GAMING LICENSE.

     11.1 Should the Mississippi Gaming Commission refuse to issue, revoke, or
fail to renew, the gaming license of LESSEE for LEASE PREMISES, by a final,
non-appealable order of said Commission or as determined by a final,
non-appealable order of a court of competent jurisdiction, LESSEE shall have one
hundred and eighty (180) days from the date of said order to transfer this LEASE
to another entity which possesses a current, valid gaming license for LEASE
PREMISES issued by the Mississippi Gaming Commission. If at the end of the one
hundred and eighty (180) day period, LESSEE has not transferred this LEASE, then
this LEASE shall automatically terminate, and LESSEE shall surrender possession
of LEASE PREMISES as provided in Paragraphs 26.6 and 26.7.

     11.2 In the event LESSEE'S use of LEASE PREMISES for gaming is restrained
or enjoined by an order of a court of competent jurisdiction, or otherwise
legally abrogated or interrupted due to a challenge to the legality of the
Mississippi gaming statutes or by act of the Mississippi Legislature or the
United States Congress, then LESSOR and LESSEE may negotiate a new lease of
LEASE PREMISES on mutually agreeable terms, or this LEASE may thereafter be
cancelled on thirty (30) days notice by either LESSOR or LESSEE.

                                  Page 9 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

     11.3 In the event LESSEE voluntarily surrenders its gaming license, LESSOR
and LESSEE may, within sixty (60) days of said surrender, negotiate a new lease
of LEASE PREMISES on mutually agreeable terms, or this LEASE may thereafter be
cancelled on thirty (30) days notice by either LESSOR or LESSEE.

12.  NO CLAIM OF TITLE OR INTEREST.

     12.1 In accepting this LEASE, LESSEE acknowledges and agrees that LESSEE
makes no claim of fee simple title ownership or other interest in and to LEASE
PREMISES except for those rights and uses as may be claimed by a leaseholder
under this LEASE, and LESSEE further acknowledges that the fee simple title to
LEASE PREMISES is vested in LESSOR.

13.  CATASTROPHIC DESTRUCTION.

     13.1 In the event of catastrophic destruction of LESSEE'S improvements on
LEASE PREMISES, LESSEE may, but shall not be obligated to, restore or replace
any portion of LESSEE'S improvements lost or damaged. If reconstruction of
improvements is begun within one hundred and eighty (180) days after
catastrophic destruction, LESSEE shall not be required to make any additional
rent payments that come due under this LEASE during the period of time between
such catastrophic destruction and the commencement of construction. Upon
commencement of construction within the period allowed, LESSEE shall pay the
prorated share of the annual rent that remains unpaid for that LEASE YEAR, if
any, and thereafter shall resume annual payments as provided in this LEASE. If
LESSEE elects to restore or replace lost or damaged improvements in such a way
that the replaced improvements exceed the footprint of those destroyed, then
LESSEE must obtain LESSOR'S approval for such change in footprint. If LESSEE
elects not to restore' or replace lost or damaged improvements, then LESSEE may
terminate this LEASE on thirty (30) days notice. In the event LESSEE elects to
terminate this LEASE under this provision, then LESSEE shall be obligated to
surrender LEASE PREMISES in a condition at least equal to that at the inception
of this LEASE, including removal of debris and LESSEE'S improvements or remains
of improvements. If LESSEE fails to surrender LEASE PREMISES in the condition
required, LESSOR shall have all remedies available to it under Paragraphs 26.6
and 26.7 of this LEASE concerning removal of LESSEE'S improvements at LEASE
termination.

14.  DUE DILIGENCE.

     14.1 LESSEE shall be responsible for any damages to LEASE PREMISES
proximately caused, in whole or in part, by use of LEASE PREMISES or the
activities of LESSEE under this LEASE. LESSEE shall exercise due diligence in
the protection of LEASE PREMISES and other property of LESSOR in the vicinity of
LEASE PREMISES against damage or waste from any and all causes.

     14.2 LESSEE shall not deposit any refuse, waste or substances regulated
under local, state or federal environmental and health laws on LEASE PREMISES.
Nor shall LESSEE make any such deposits on, or damage any submerged lands or
tidelands or other property belonging to the State of Mississippi adjacent to or
adjoining LEASE PREMISES. Disposition of refuse and waste shall be consistent
with local, state and federal environmental and health laws and regulations.

                                  Page 10 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

Failure to comply with such laws and regulations shall be deemed to be a
material breach of this LEASE.

15.  INDEMNITY AND HOLD HARMLESS.

     15.1 LESSEE agrees to save and hold harmless, protect and indemnify LESSOR,
the Secretary of State, the Governor and their successors, employees, officers
and agents, from and against any and all loss, damages, claims, suits or actions
at law or in equity, judgments and costs, including reasonable attorney's fees,
which may arise or grow out of any injury or death of persons or loss or damage
to property, including damages to the environment, connected with LESSEE'S
exercise of any right granted or conferred in this LEASE, or the condition of
LEASE PREMISES, or LESSEE'S use, maintenance, or operation of LEASE PREMISES,
whether sustained by LESSEE, his respective agents or employees, or by any other
persons, or corporations which seek to hold LESSOR liable, provided however,
that LESSEE'S obligations under this Paragraph 15.1 may be limited to the
extent, and only to the extent, such loss, damage, claims, suits or actions are
caused directly by an act and/or omission of LESSOR, its agents or employees,
successors or assigns.

     15.2 In executing this LEASE, LESSOR is relying on a survey (Exhibit 2
attached hereto) provided by LESSEE. LESSEE expressly agrees to indemnify and
save harmless LESSOR, its employees, officers and agents, for liability, damages
(including but not necessarily limited to damages to land, aquatic life and
other natural resources), expenses, causes of actions, suits, claims, costs,
fees, including reasonable attorneys' fees and costs, penalties (civil and
criminal) or judgments arising out of LESSOR'S reliance on LESSEE'S survey.

16.  QUIET AND PEACEFUL POSSESSION.

     16.1 LESSEE shall have quiet and peaceful possession of LEASE PREMISES so
long as LESSEE is in compliance with the terms and provisions of this LEASE.

17.  RIGHT OF ENTRY.

     17.1 LESSOR shall have the right to enter onto LEASE PREMISES, upon
reasonable times, to inspect LEASE PREMISES for purposes of verifying compliance
with the terms and provisions of this LEASE.

     17.2 LESSEE grants unto LESSOR rights of ingress and egress to LEASE
PREMISES in, over, across and through uplands and facilities on uplands owned or
controlled by LESSEE, upon reasonable times, for purposes of entering onto and
inspecting LEASE PREMISES.

18.  LESSOR NOT RESPONSIBLE.

     18.1 LESSEE assumes full responsibility for the condition of LEASE PREMISES
during the term of this LEASE. LESSOR shall not be liable or responsible for any
damages or injuries caused by any vices or defects therein to LESSEE or to any
occupant or to anyone in or on LEASE PREMISES who derives his right to be
thereon from LESSEE, provided however, that LESSEE'S obligations under this
Paragraph 18.1 may be limited to the extent, and only to the extent, such

                                  Page 11 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

loss, damage, claims, suits or actions are caused directly by an act and/or
omission of LESSOR, its agents or employees, successors or assigns.

19.  LIABILITY INSURANCE.

     19.1 LESSEE shall secure and maintain throughout the term of the LEASE a
liability insurance policy providing coverage in a commercially reasonable
amount to be determined by LESSEE, but in no event less than five million and
no/100ths dollars ($5,000,000.00) against accidents, death or bodily injury or
loss or damage to property occurring on or in connection to LEASE PREMISES, or
LESSEE'S vessel, or arising out of or associated with any activity of LESSEE on
LEASE PREMISES. LESSEE shall annually supply a certificate evidencing said
insurance to LESSOR.

20.  RESERVATION OF MINERAL RIGHTS.

     20.1 LESSEE further covenants and agrees that this LEASE and leasehold
interest of LESSEE shall not include any mineral, oil or gas, coal, lignite, or
other mineral or subterranean rights whatsoever.

21.  RIGHT TO CANCEL UPON INSOLVENCY OF LESSEE.

     21.1 LESSEE covenants and agrees that if an execution or process is levied
upon LEASE PREMISES and is not removed within ninety (90) days or if a petition
in bankruptcy be filed by or against LESSEE in any court of competent
jurisdiction, LESSOR shall have the right at its option, to cancel this LEASE;
provided, however, that if a petition in bankruptcy is filed by a person other
than LESSEE, and payment of rent remains current, LESSOR shall not have the
right to cancel this LEASE under this Paragraph 21.1 until an order for relief
has been entered by the bankruptcy court in connection with such petition.
LESSEE covenants and agrees that this LEASE and the leasehold interest of LESSEE
hereunder shall not, without the written consent of the Secretary of interest
under this LEASE to any financially responsible entity licensed by the
Mississippi Gaming Commission.

State or his successor first obtained, be subject to garnishment or sale, under
execution or otherwise in any suit or proceeding which may be brought by or
against LESSEE.

22.  WAIVER NOT A DISCHARGE.

     22.1 No failure, or successive failures, on the part of LESSOR to enforce
any term or provision of this LEASE, nor any waiver or successive waivers by
LESSOR of any term or provision of this LEASE, shall operate as a discharge
thereof or render the same inoperative or impair the right of LESSOR to enforce
the same in the event of subsequent or continuing breach or breaches or upon any
renewal thereof.

23.  NOTICE.

     23.1 (a)  All notifications required under the terms of this LEASE shall be
made by U.S. Mail or by rapid delivery courier service to the parties at the
following addresses:

                                  Page 12 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

       Secretary of State:           Assistant Secretary of State
                                     Public Lands Division

                                     (by U. S. Mail)
                                     Post Office Box 136
                                     Jackson, Mississippi 39205-0136

                                     Telephone:    (601) 359-6373
                                     Facsimile:    (601) 359-1461

       Premier Entertainment, LLC:   Joseph Billhimer
                                     President and Chief Executive Officer

                                     (by U.S. Mail and by Courier)
                                     11400 Reichold Road
                                     Gulfport, Mississippi 39503

                                     Telephone:    (228) 594-4021
                                     Facsimile:    (228) 896-4078

          (b)  Notices shall be effective upon receipt by the receiving
party. Upon written request, LESSOR and LESSEE agree that they will promptly
acknowledge in writing to the other receipt of any notice received pursuant to
any provision of this LEASE.

     23.2 LESSOR or LESSEE may change the identity of the party designated to
receive notices under this LEASE by delivering, in the manner provided in
Paragraph 23.1, notification of such change. The notice of change in party
designated to receive notice shall clearly state the name, title or office,
address for U.S. Mail delivery and address for courier delivery, telephone
number and facsimile number of the new party designated to receive notices under
this LEASE. Neither LESSOR nor LESSEE shall be entitled to designate, at any one
time, more than one party to receive notices under this LEASE. Any such notice
of change in the party designated to receive notice under this LEASE shall be
effective upon receipt of such notice.

24.  LAWS OF MISSISSIPPI TO GOVERN.

     24.1 This agreement is to be governed by the laws of the STATE OF
MISSISSIPPI, both as to interpretation and performance.

25.  LEASEHOLD MORTGAGEE PROTECTIONS.

     25.1 LEASEHOLD MORTGAGE means any and all deeds of trust, mortgages or
security interests including without limitation any and all assignments,
renewals, extensions or modifications thereof executed by LESSEE and covering
LESSEE'S leasehold interest under this LEASE. LEASEHOLD MORTGAGEE shall mean the
beneficiary or beneficiaries. successors or assigns under any LEASEHOLD
MORTGAGE. The terms LEASEHOLD MORTGAGE and LEASEHOLD MORTGAGEE may refer to one,
or collectively to all, such mortgage or mortgages and mortgage holders in
existence at any time. In accepting or exercising any benefit or right provided
in this

                                  Page 13 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

Paragraph 25, LEASEHOLD MORTGAGEE agrees to be bound by all duties and
obligations imposed by this Paragraph.

     25.2 Paragraph 25 is intended to provide additional, limited rights to a
LEASEHOLD MORTGAGEE for the sole purpose of protecting or enforcing an interest
secured under a LEASEHOLD MORTGAGE. Except where expressly stated, the LEASEHOLD
MORTGAGEE protections in this Paragraph 25 shall not amend any other paragraph
or provision of this LEASE with regard to any duties or obligations of any
LESSEE with respect to LESSOR or LEASE PREMISES. No LEASEHOLD MORTGAGEE
protection allowed in this Paragraph 25 may ever be claimed, exercised or used
in any manner whatsoever by any LESSEE or any entity which is an affiliate of
LESSEE.

     25.3 LESSOR consents to one or more LEASEHOLD MORTGAGES. However, LESSOR'S
consent shall never be deemed or construed to be a subordination of LESSOR'S
rights as landlord hereunder or to permit alteration or amendment of this LEASE
by a term or provision in a LEASEHOLD MORTGAGE. No LEASEHOLD MORTGAGE will ever
be an encumbrance on the fee interest in LEASE PREMISES or on any interest of
the LESSOR therein. Any LEASEHOLD MORTGAGE is limited strictly to LESSEE'S
leasehold interest under this LEASE. Neither the LESSOR nor any interest of
LESSOR in LEASE PREMISES shall ever be held accountable or levied upon for any
debt or obligation of LESSEE under LEASEHOLD MORTGAGE or otherwise.

     25.4 (a)  Each and every LEASEHOLD MORTGAGEE shall promptly give LESSOR
notice of its LEASEHOLD MORTGAGE at the address and in the manner provided in
Paragraph 23. The notice shall include (1) the name of the LEASEHOLD MORTGAGEE,
title or office, U. S. Mail address, courier address, telephone number and
facsimile number, (2) a certified copy of the LEASEHOLD MORTGAGE, and (3) an
acknowledgement that BY exercising any right or benefit under this Paragraph 25,
LEASEHOLD MORTGAGEE agrees to be bound by all duties and obligations imposed. on
a LEASEHOLD MORTGAGEE in this paragraph. No right under this Paragraph 25 shall
become available to and effective with respect to a LEASEHOLD MORTGAGEE unless
and until that LEASEHOLD MORTGAGE has given notice of its LEASEHOLD MORTGAGE in
the manner provided in this Paragraph 25.4(a).

          (b)  At no time, and for no purpose, shall LESSOR be required to give
notice to more than one entity at more than one address for any notice to
LEASEHOLD MORTGAGEE under this LEASE. If at any time, there is more than one
LEASEHOLD MORTGAGEE, then each LEASEHOLD MORTGAGEE shall together with all
others agree and designate a single agent for receiving notices to LEASEHOLD
MORTGAGEE under this LEASE. In the absence of such Agreement, LESSOR shall be
required to provide notice only to the LEASEHOLD MORTGAGEE which gave the
earliest notice under Paragraph 25.4(a). Notice of the designation of agent
shall include the name of the designated agent, title or office, U. S. Mail
address, courier address, telephone number and facsimile number. Notice to the
designated agent or to the LEASEHOLD MORTGAGEE, which gave the earliest notice
under Paragraph 25.4(a) in the event no agent has been designated, shall be
deemed notice to each and every LEASEHOLD MORTGAGEE for all purposes under this
LEASE.

          (c)  Any notice required to be made under the terms of this LEASE to
LEASEHOLD MORTGAGEE shall be made by U.S. Mail or by rapid delivery courier
service to the

                                  Page 14 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

last name and address provided pursuant to Paragraph 25.4(a) or in the case of a
designated agent to the last name and address provided pursuant to Paragraph
25.4(b).

          (d)  LEASEHOLD MORTGAGEE may change the identity of the party
designated to receive notice under this paragraph by delivering notification of
such change to LESSOR at the address and in the manner provided in Paragraphs
23, 25.4(a) and 25.4 (b). The notice of change in the party designated to
receive notice for the LEASEHOLD MORTGAGEE shall clearly state the name, title
or office, address for U.S. Mail delivery and address for courier delivery,
telephone number and facsimile number designated to receive notices. Any such
notice of change in the party designated to receive notice for the LEASEHOLD
MORTGAGEE shall be effective upon receipt of such notice by LESSOR.

          (e)  Upon written request, LESSOR, LESSEE and LEASEHOLD MORTGAGEE (or
LEASEHOLD MORTGAGEE'S designated agent, as the case may be) each agree that they
will promptly acknowledge in writing to the other receipt of any notice or
instrument received pursuant to any provision of this LEASE.

     25.5 For the benefit of LEASEHOLD MORTGAGEE, LESSOR and LESSEE agree and
acknowledge as follows:

          (a)  LESSOR will not accept any voluntary cancellation, surrender,
termination or abandonment of this LEASE by LESSEE without the prior written
consent of LEASEHOLD MORTGAGEE. No modification or amendment of this LEASE shall
be binding upon a LEASEHOLD MORTGAGEE until LEASEHOLD MORTGAGEE receives notice
of such modification or amendment in the manner provided in Paragraph 25.4.
However, the determination of the amount of rent to be charged under this LEASE,
whether initially or any subsequent determination or adjustment, is not deemed
to be a modification or amendment of the LEASE. Any such determination or
adjustment of rent shall be effective as otherwise provided in this LEASE,
without regard to when or whether LEASEHOLD MORTGAGEE receives notice thereof.

          (b)  Except with regard to notices pertaining to the determination or
adjustment of rent under this LEASE, LESSOR will also give LEASEHOLD MORTGAGEE
(or as the case may be, its designated agent for notice) the same notices in the
same manner required to be given LESSEE under this LEASE.

          (c)  LEASEHOLD MORTGAGEE shall have the right to perform any term,
covenant, condition or agreement of this LEASE required of LESSEE or remedy any
default of LESSEE, excluding any covenant, condition or term in which the
performance thereof would require a gaming license. LESSOR shall accept
performance by LEASEHOLD MORTGAGEE as if done by LESSEE. It is expressly
understood that LEASEHOLD MORTGAGEE may cure LESSEE'S default in any payment of
a liquidated sum of money under Paragraph 8.1.

          (d)  A LEASEHOLD MORTGAGEE may exercise any of its rights under this
Paragraph 25 through a designee, nominee, or wholly owned subsidiary, provided
LEASEHOLD MORTGAGEE shall first give LESSOR written notice in the manner
provided in Paragraph 23 that said rights will be exercised by a designee,
nominee or wholly owned subsidiary.

                                  Page 15 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

          (e)  If LESSOR shall become entitled to reenter LEASE PREMISES or
terminate this Lease by reason of a default of LESSEE, other than a default in
the payment of rent or other sum of money under this LEASE, LESSOR will give
LEASEHOLD MORTGAGEE written notice. If LEASEHOLD MORTGAGEE, within sixty (60)
days of such notice, undertakes and maintains a diligent, good faith effort to
cure such default, and thereafter cures the default within the time allowed and
in the manner required by the applicable LEASE provision, then this LEASE will
not terminate by reason of such default. Upon receipt of written notice under
this Paragraph 25.5(e), LESSOR and LESSEE agree that LEASEHOLD MORTGAGEE shall
have the right to immediate possession of LEASE PREMISES, and LESSEE agrees to
immediately and peaceably quit, deliver up and surrender possession of LEASE
PREMISES to LEASEHOLD MORTGAGEE on demand. For purposes of computing the time
allowed for curing a default by LEASEHOLD MORTGAGEE, the time allowed for cure
will begin on the sixtieth (60th) day after LESSOR'S notice to LEASEHOLD
MORTGAGE of the right to reenter or terminate this LEASE. If as a result of
LESSEE'S bankruptcy or other order directed against LESSEE by a court or
governmental agency having competent jurisdiction, LEASEHOLD MORTGAGEE is
prevented from curing a default under this LEASE, other than a default in the
payment of rent or other sum of money under this LEASE, then the time allowed
LEASEHOLD MORTGAGEE for curing such default will begin on the earlier of the
date any such court or agency restraint is removed or twelve (l2) months after
the date on which LESSOR gave notice to LEASEHOLD MORTGAGEE under this Paragraph
25.5(e).

          (f)  It is understood and agreed that in the event a LEASEHOLD
MORTGAGEE should foreclose, it shall have the right to make a one-time
assignment of LESSEE'S leasehold interest under this LEASE to any financially
responsible entity licensed by the Mississippi Gaming Commission.

          (g)  If this LEASE terminates prior to the expiration of the primary
term or secondary term, as the case may be, LESSOR will give notice to LEASEHOLD
MORTGAGEE. The notice shall set forth all sums then due to LESSOR under this
LEASE. Upon written request by LEASEHOLD MORTGAGEE made within sixty (60) days
of such notice of termination, LESSOR will enter into a new lease of LEASE
PREMISES with LEASEHOLD MORTGAGEE effective as of the date of termination of
this LEASE and upon the same terms and conditions of this LEASE in effect as of
the date of termination, but subject to any intervening adjustments of rent that
would have occurred if the LEASE had not been terminated. Provided, however, as
a condition precedent, LEASEHOLD MORTGAGEE (1) shall pay LESSOR all sums due
under this LEASE as set forth in the notice of termination plus additional
penalties thereafter accruing, (2) shall pay all ad valorem taxes and special
assessments due any county or municipality, (3) shall pay to LESSOR all
reasonable expenses including, legal and attorney's fees incurred by LESSOR by
reason of such termination, (4) shall perform and observe all covenants and
conditions of this LEASE that LESSEE was obligated to perform but failed to
perform prior to termination of this LEASE, and (5) shall save and hold
harmless, protect and indemnify LESSOR, its employees, officers and agents
harmless from and against any and all loss, costs, liability and expense
including reasonable attorneys' fees resulting from or in any way connected with
the election by LEASEHOLD MORTGAGEE to enter a new lease with LESSOR under this
Paragraph 25.5(g).

          (h)  Upon written request from the LEASEHOLD MORTGAGEE, LESSOR agrees
to furnish LEASEHOLD MORTGAGEE a letter setting out the status of the following
lease terms and obligations of LESSEE: (1) the rent payable under this LEASE;
(2) the term of this LEASE and the

                                  Page 16 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

status of LESSEE'S extension rights, if any, (3) the nature of any known
defaults by LESSEE. Upon request by LEASEHOLD MORTGAGEE, LESSOR may in its
discretion provide other non-privileged information reasonably pertinent to
LESSEE'S performance under this LEASE.

     25.6 Should LEASEHOLD MORTGAGEE for any reason take possession of the LEASE
PREMISES, it shall be subject to and shall comply fully with all of the terms,
provisions and conditions of this LEASE in the same manner as if it were LESSEE,
but only for so long as the LEASEHOLD MORTGAGEE has not assigned its interest
under this LEASE or terminated the LEASE as otherwise provided in this LEASE.

     25.7 LEASEHOLD MORTGAGEE agrees to save and hold harmless, protect and
indemnify LESSOR, the Secretary of State, Governor and their successors,
employees, officers or agents from and against any and all loss, damages,
disputes, claims, suits, or actions at law or in equity, judgments and expenses
and costs, including reasonable attorney's fees which may result from, arise or
grow out of, or which are in any way connected with LEASEHOLD MORTGAGEE'S
exercise of any right granted or conferred by this LEASE, or with any action of
LEASEHOLD MORTGAGEE to protect or enforce any right or secured interest under a
LEASEHOLD MORTGAGE, including but not necessarily limited to the performance, or
refusal to perform any LEASE term, disputes between LESSEE and LEASEHOLD
MORTGAGEE, disputes among and between LEASEHOLD MORTGAGEES, or failure of a
LEASEHOLD MORTGAGEE to give notice required hereunder. Provided however,
LEASEHOLD MORTGAGEE'S obligations under this Paragraph 25.7 may be limited to
the extent, and only to the extent, that any such loss, damage, claims suits or
actions are directly caused by an act and/or an omission of LESSOR, its
officers, agents, employees or their successors.

     25.8 In the event the interest of LESSEE under this LEASE becomes the
object of condemnation proceedings, LEASEHOLD MORTGAGEE shall be entitled to
participate in said condemnation proceedings to the same extent as LESSEE.

     25.9 If as any time during this LEASE there is a LEASEHOLD MORTGAGE in
effect and LESSEE becomes entitled to receive proceeds of fire or other hazard
insurance policies covering LESSEE'S improvements or operations on LEASE
PREMISES, then LESSEE agrees that such insurance proceeds shall be paid to
LEASEHOLD MORTGAGEE, and LEASEHOLD MORTGAGEE shall apply such insurance proceeds
as provided in the LEASEHOLD MORTGAGE.

26.  CANCELLATION OR TERMINATION OF LEASE.

     26.1 LESSOR and LESSEE mutually agree that it is necessary for LESSEE to
obtain financing satisfactory, in its sole discretion, for the development and
operation of LEASE PREMISES for the USES described in Paragraph 2. In the event
LESSEE does not obtain said satisfactory financing, LESSEE may terminate this
LEASE upon thirty (30) days written notice to LESSOR. If LESSEE has not obtained
satisfactory financing within one (1) year from BEGIN DATE then LESSOR may
cancel this LEASE upon thirty (30) days notice to LESSEE. LESSOR and LESSEE may
by mutual agreement in writing extend the time for LESSEE to obtain satisfactory
financing.

     26.2 LESSOR and LESSEE mutually agree that it is necessary for LESSEE to
obtain and maintain a valid gaming license and to obtain and maintain building
approvals and permits by

                                  Page 17 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

any agencies having jurisdiction over same for the development and operation of
LEASE PREMISES for USES described in Paragraph 2. Should LESSEE fail to obtain
and maintain the required permits, licenses or approvals for the development and
operation of LEASE PREMISES for said USES, LESSEE may cancel this LEASE upon
thirty (30) days written notice to LESSOR. If LESSEE has not obtained said
permits, licenses or approvals prior to June 1, 2006, then LESSOR may cancel
this LEASE upon thirty (30) days notice to LESSEE. LESSOR and LESSEE may by
mutual agreement in writing extend the time for LESSOR'S to obtain said permits,
licenses or approvals.

     26.3 In the event of the invalidation of any material provision of this
LEASE by a final, non-appealable judgment or court order, either LESSOR or
LESSEE may cancel this LEASE, or LESSOR and LESSEE may renegotiate this LEASE on
mutually agreeable terms.

     26.4 LESSEE shall be in default, if LESSEE should at any time fail to make
permitted USES of LEASE PREMISES or abandon LEASE PREMISES for a period of
ninety (90) consecutive days, and this LEASE may be canceled by LESSOR after
thirty (30) days written notice to LESSEE, provided, LESSOR and LESSEE may,
within sixty (60) days from the giving of such notice, negotiate a new lease of
LEASE PREMISES on mutually agreeable terms. Any further extension of time under
this Paragraph 26.4 shall be granted only upon mutual written agreement of
LESSOR and LESSEE. LESSEE shall be liable for the payment of all reasonable
attorney's fees, expenses and costs of LESSOR incurred in the enforcement of
this Paragraph 26.4.

     26.5 If not sooner cancelled or terminated, this LEASE shall terminate at
11:59 P.M. central (standard or daylight savings) time on the last day of the
primary term, or if renewed pursuant to Paragraph 1.2, then this LEASE shall
terminate at 11:59 P.M. central (standard or daylight savings) time on the last
day of the secondary term.

     26.6 Immediately upon the cancellation or termination of this LEASE for any
reason, LESSOR shall be entitled to take possession of LEASE PREMISES, custom
and usage to the contrary notwithstanding, and LESSEE covenants and agrees to
immediately and peaceably quit, deliver up and surrender possession of LEASE
PREMISES to LESSOR, provided LESSEE shall promptly remove improvements and
restore LEASE PREMISES as provided in Paragraph 26.7.

     26.7 LESSEE shall have one hundred and eighty (180) days from the date this
LEASE is cancelled or terminated for any reason to remove LESSEE'S improvements,
structures and equipment and to restore LEASE PREMISES to a condition at least
equal to that at the inception of this LEASE. If LESSEE declines or fails to
remove such improvements, structures and equipment or restore LEASE PREMISES
within the time provided, then such improvements, structures and equipment will
be deemed forfeited by LESSEE, and may be removed and/or sold by LESSOR. Any
costs incurred by LESSOR in the removal of such improvements, structures and
equipment or restoring LEASE PREMISES shall be paid for from the proceeds of
sale of such improvements, structures and equipment. If funds derived from the
sale of such improvements, structures and equipment are insufficient to pay such
costs, LESSEE shall be liable for such deficiency, and to aid of recovery of any
such deficiency, LESSOR is hereby granted a lien upon the interest of LESSEE in
adjacent uplands, and such lien shall be enforceable in proceedings as provided
by law.

                                  Page 18 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

27.  MISCELLANEOUS.

     27.1 LESSEE and LESSOR agree that within sixty (60) days after OPEN DATE as
defined in Paragraph 3.2, that they will execute in recordable form an addendum
to this LEASE setting out those terms and facts, together with any required
EXHIBITS, material to this LEASE which are uncertain or unknown as of the BEGIN
DATE. Such terms and facts shall include (but are not necessarily limited to)
the day, month and year of the OPEN DATE, the amount of the annual rent as
determined pursuant to Paragraph 3.3, and the as-built specifications of the
CASINO and recreational marina. A copy of a valid gaming license issued to
LESSEE for LEASE PREMISES shall also be attached as an EXHIBIT to the addendum
to this LEASE.

     27.2 As a condition precedent to the exercise of any USE or right granted
to LESSEE under this LEASE, LESSEE covenants and binds itself, its successors
and its assigns to faithfully and timely comply with all the terms and
provisions of this LEASE.

     27.3 The remedies set forth in this LEASE are not exclusive, and the
election of one remedy by LESSOR shall not be deemed or construed as a waiver of
any other remedy available to LESSOR. In addition to the remedies provided in
this LEASE, LESSOR shall be entitled to whatever remedies it may have otherwise
at law or in equity.

     27.4 LESSOR and LESSEE agree that they will execute and deliver, at the
request of the other, any and all such documents or other written instruments as
may be reasonably necessary or appropriate to carry out and effectuate the
intent and purpose of this LEASE and the EXHIBITS attached hereto.

     27.5 No amendments or additions to LEASE shall be binding unless in writing
and signed by all parties.

     27.6 All covenants and agreements herein shall bind and inure to the
benefit of the parties hereto and to their successors and assigns.

     27.7 This instrument constitutes the entire agreement between LESSOR and
LESSEE and supersedes all prior understandings, previous negotiations, and any
memoranda or understanding with respect to the subject matter hereof.

                                  Page 19 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

     EXECUTED by LESSOR and LESSEE effective as of the date first stated above.

LESSOR:  STATE OF MISSISSIPPI

                                              ERIC CLARK
                                              SECRETARY OF STATE

                                          BY: /S/ GERALD MCWHORTER
                                             -----------------------------------
                                              GERALD MCWHORTER
                                              ASSISTANT SECRETARY OF STATE
                                              FOR PUBLIC LANDS

APPROVED BY

/S/ RONNIE MUSGROVE
-------------------------------------
RONNIE MUSGROVE
GOVERNOR, STATE OF MISSISSIPPI

LESSEE:  PREMIER ENTERTAINMENT, LLC
                                          BY: /S/ JOSEPH BILLHIMER
                                             -----------------------------------
                                              JOSEPH BILLHIMER
                                              PRESIDENT AND CHIEF EXECUTIVE
                                              OFFICER

                                  Page 20 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

STATE OF MISSISSIPPI
COUNTY OF HINDS

     Personally appeared before me, the undersigned authority in and for the
said county and state, on this the 28th day of October, 2003, within my
jurisdiction, the within named GERALD MCWHORTER, who acknowledged that he is
ASSISTANT SECRETARY OF STATE FOR PUBLIC LANDS OF THE STATE OF MISSISSIPPI and
that in said representative capacity he executed the above and foregoing
instrument, after first having been duly authorized so to do.

                                          /s/ Cora Mae Jones
                                          --------------------------------------
< < SEAL > >                                                       NOTARY PUBLIC

My Commission Expires: June 2, 2004

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

STATE OF MISSISSIPPI
COUNTY OF HINDS

     Personally appeared before me, the undersigned authority in and for the
said county and state, on this the 30th day of October, 2003, within my
jurisdiction, the within named RONNIE MUSGROVE, who acknowledged that he is
GOVERNOR OF THE STATE OF MISSISSIPPI and that in said representative capacity he
executed the above and, foregoing instrument, after first having been duly
authorized so to do.

                                          /s/ Debbie Gentry Harris
                                          --------------------------------------
< < SEAL > >                                                       NOTARY PUBLIC

My Commission Expires: Mar 6, 2007

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

                                  Page 21 of 22
<Page>

PUBLIC TRUST TIDELANDS LEASE                          PREMIER ENTERTAINMENT, LLC

STATE OF MISSISSIPPI
COUNTY OF HARRISON

     Personally appeared before me, the undersigned authority in and for the
said county and state, on this 27th day of October, 2003, within my
jurisdiction, the within JOSEPH BILLHIMER, who acknowledged that he is PRESIDENT
AND CHIEF EXECUTIVE OFFICER OF PREMIER ENTERTAINMENT, LLC, a manager-managed
Mississippi limited liability company, and that for and on behalf of the said
company, and as the act and deed of Premier Entertainment, LLC, he executed the
above and foregoing instrument, after first having been duly authorized by the
company so to do.

                                          /s/ Charleen A Benigno
                                          --------------------------------------
                                                                   NOTARY PUBLIC

My Commission Expires: February 4, 2004

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

                                  Page 22 of 22
<Page>

LESSOR:

The State of Mississippi, by the Secretary of State
  with the approval of the Governor
Public Lands Division
Post Office Box 136
Jackson, Mississippi 39205-0136
Phone: (601) 359-6373

LESSEE:
Premier Entertainment, LLC
11400 Reichold Road
Gulfport, Mississippi 39503
Phone: (228) 594-4021

PREPARED BY:
State of Mississippi Secretary of State
Public Lands Division
Post Office Box 136
Jackson, Mississippi 39205-0136
Phone: (601) 359-6373

RETURN TO:
Balch & Bingham LLP
Post Office Box 130
Gulfport, Mississippi 39502-0130
Phone: (228) 864-9900

INDEXING INSTRUCTIONS:
Biloxi Section Blocks 130 & 130,5 in Fractional Section 27-T7S-R9W, 2nd Judicial
District, Harrison County, Mississippi.<Page>

                                                                    Exhibit 10.4

                         LEASE AND AIR RIGHTS AGREEMENT

     THIS AGREEMENT (herein caned the "LEASE"), made on the 18th day of
November, 2003, by and between the CITY OF BILOXI, MISSISSIPPI, a municipal
corporation organized and existing under the laws of the State of Mississippi
(herein caned "CITY" or "LANDLORD"), PREMIER ENTERTAINMENT, LLC, a Mississippi
Limited Liability Company, and/or PREMIER ENTERTAINMENT BILOXI LLC, the survivor
company in the impending merger of PREMIER ENTERTAINMENT, LLC with PREMIER
ENTERTAINMENT BILOXI LLC, a Delaware Limited Liability Company (herein called
"PREMIER" or "TENANT"), whose permanent resident addresses are declared to be:

     for LANDLORD:      City of Biloxi              City of Biloxi
                        140 Lameuse Street    Or    P.O. Box 429
                        Biloxi, MS 39530            Biloxi, MS 39533

     and for TENANT:    Premier Entertainment, LLC
                        11400 Reichold Road
                        Gulfport, MS 39530

     FOR AND IN CONSIDERATION OF the mutual covenants and promises contained
herein, PREMIER and the CITY hereby covenant and agree as follows:

                                    SECTION 1
                                  DEFINED TERMS

     For purposes of interpretation and implementation of this agreement, the
following terms shall have the designated definitions or meanings:

     "Additional Rent" -
          Additional Rent shall consist of all monetary charges, assessments,
          and liabilities of the TENANT which are assessed or incurred pursuant
          to this agreement, whether designated as "Additional Rent" or
          otherwise, including but not limited to those described in Section 7;

     "Airspace" -
          the column of airspace directly above the Lameuse Street Parcel
          (depicted as Parcel 1 on Exhibit "H") and the Service Road Parcel
          (depicted as Parcels 3 and 4 on Exhibit "H") and certain support
          structure rights set out in Section 3; all subject to the restrictions
          contained in Section 3;

     "Basic Rent" -
          Basic Rent shall be defined as that amount or those amounts identified
          in Section 6;

     "CITY" -
          CITY shall mean the CITY of Biloxi, Mississippi, its successors or
          assigns;

<Page>

     "Improvements" -
          Improvements shall refer to the parking garage and pedestrian walkover
          which are permitted to be constructed on the Lameuse Street Parcel,
          Lameuse Street Parking Area, and Service Road Parcel and in the
          Airspace as referenced in Section 3(B);

     "Lameuse Street Parcel" -
          the Lameuse Street Parcel shall mean the property described on Exhibit
          "B" and depicted as Parcel on Exhibit "H";

     "Lameuse Street Parking Area" -
          Lameuse Street Parking Area shall mean that parcel described in
          Exhibit "A", and depicted as Parcel 2 on Exhibit "H";

     "LANDLORD" -
          LANDLORD shall mean the CITY of Biloxi, Mississippi, it successors or
          assigns;

     "Leased Premises"-
          the Leased Premises shall consist of that property described in
          Section 2(A) and depicted in Exhibit "A";

     "PREMIER" -
          PREMIER shall mean PREMIER Entertainment, LLC, its successors or
          assigns;

     "Service Road Parcel" -
          the Service Road Parcel shall consist of that property described in
          Section 3(A) and depicted in Exhibit "C", Part 1 and Part 2; as
          depicted as Parcels 3 and 4 on Exhibit "H";

     "TENANT" -
          TENANT shall mean PREMIER Entertainment, LLC, its successors or
          assigns;

                                    SECTION 2
                          LEASED PREMISES AND EASEMENTS

     A.   In consideration of the rents hereinafter set out to be paid by
TENANT, and in further consideration of the mutual covenants and promises
hereinafter set out to be observed and performed by TENANT and LANDLORD,
LANDLORD demises and leases to TENANT, and TENANT leases and rents from
LANDLORD, that certain real property and property rights which is located in the
CITY of Biloxi, Mississippi, and described more particularly as follows:

          a)   the Lameuse Street Parking Area described in Exhibit "A"; and,

          b)   the Airspace as defined herein.

     B.   TENANT has inspected the Leased Premises and accepts same in its
present condition. LANDLORD makes no warranty regarding the condition of the
Leased Premises and makes no covenant to alter, repair, or construct any
improvements on the Leased Premises. The

                                        2
<Page>

taking of possession of the Leased Premises by TENANT shall be conclusive
evidence that the Leased Premises were in good and satisfactory condition in
accordance with the terms of this Lease at the time such possession was taken.

                                    SECTION 3
           USE OF LEASED PREMISES AND AIRSPACE ABOVE ADDITIONAL AREAS

     A.   For the same consideration, PREMIER's use and occupation of the Leased
Premises shall include the use of airspace, as well as the ground space
thereunder solely to the extent necessary to construct and maintain support
columns for improvements in the airspace; provided, however, location and
placement of said columns and support structures upon the ground below the
Airspace is subject to approval of the CITY in order to ensure safe and
practical configuration of the public roads and parking spaces to be created
below the Airspace:

     LAMEUSE STREET PARCEL: This parcel shall include that area bounded on the
north by the south margin of U.S. Highway 90; on the east by the Leased Premises
as defined above; on the south by the westward extension of the north bulkhead
of the Commercial Fishermen's Harbor; and on the west by the west margin of Lame
use Street as extended south of U.S. Highway 90; all of which is described with
more particularity in the survey designated as Exhibit "B", which is attached
hereto and made a part hereof; and,

     SERVICE ROAD PARCEL: This parcel shall include that area bounded on the
east by the west margin of Main Street as extended south from U.S. Highway 90;
on the south by the north bulkhead of the Commercial Fishermen's Harbor; on the
west by the east margin of Lameuse Street as extended south; and on the north by
the property of PREMIER, after the conveyance to the CITY of that portion of the
Service Road Parcel described in Exhibit "C", Part 2 (designated 'Parcel 4' on
Exhibit "H") as contemplated by Section 7F, all of which is described with more
particularity in the survey designated as Exhibit "C" (parts 1 and 2), which is
attached hereto and made a part hereof.

     In order to ensure PREMIER's continued right to the non-exclusive use of
the roadways as set out above, for maintenance of the support columns, the CITY
hereby grants unto PREMIER and its employees, tenants, agents, successors, and
assigns, a non-exclusive easement for the term of this Lease, and any renewals
or extensions thereof, over the roadways on the Lameuse Street Parcel and the
Service Road Parcel, for the maintenance and repair of the support columns and
other support structure located thereon. In addition, PREMIER and its employees,
tenants, agents, successors, assigns, and invitees shall have the same rights of
ingress and egress over said roadways as the general public as long as those
roadways remain public streets; and in the event that the public road in the
Lameuse Street Parcel, the public in the Service Road Parcel, or the public road
in that portion of Lameuse Street or Lameuse Street projected South of the
Lameuse Street Parcel (depicted as parcel 6 on Exhibit "H", and described in
Exhibit "J") shall be vacated or cease to be designated and used as a public
road by the CITY, then PREMIER is further granted a non-exclusive easement for
the benefit of its employees, tenants, agents, successors, assigns, and
invitees, for the term of this Lease, and any renewals or extensions thereof,
for the purpose of ingress and egress across any such roadway so abandoned or
vacated.

                                        3
<Page>

     B.   The Airspace will be used exclusively for constructing, operating,
maintaining, and repairing a parking garage and elevated bridge in conjunction
with PREMIER's gaming enterprise (hereinafter referred to as the
"Improvements"). All such Improvements shall have a minimum clearance or bottom
floor elevation of 14 feet above the improved surface below it, except for
support columns as are reasonable and necessary to support the improvements
above in accordance with engineering and construction standards. For the purpose
of this Lease, "improved surface below it" as used herein shall mean the surface
grade of the respective roadways as first constructed in conjunction with the
contemplated improvements. Any change in the authorized use of the Airspace
shall require prior written approval of the CITY. PREMIER covenants that no
flammable, explosive, or hazardous material will be manufactured or stored in
the aforesaid described areas (excluding fuel in fuel tanks of parked vehicles).

     C.   PREMIER will have the sole responsibility for developing,
constructing, operating, maintaining, and repairing said Improvements over the
Airspace, and shall do so at its sole cost and expense. PREMIER may construct
and maintain columns or support structures on the surface under the Airspace for
its improvements located in the Airspace; provided, however, that such support
structures shall be located in a manner that will not degrade or diminish the
structural integrity of the bulkheads surrounding Commercial Fishermen's Harbor
nor obstruct the right of way and parking spaces in the Service Road Parcel.
Should PREMIER desire to erect a support structure in a location that is
inconsistent with maintaining the existing structural integrity of said bulkhead
or which may be an obstruction to the right of way and parking spaces for the
Service Road Parcel, then PREMIER must obtain prior approval of the CITY which,
in its sole discretion, shall have the option of either requiring the relocation
of said support structure or permitting the placement of the support structure
provided remedial work, repairs, and preventive measures (to protect said
bulkhead or preserve the right of way and parking spaces) are performed to the
specifications and satisfaction of the CITY. Although support structures may
encroach on the 40 foot right of way of Lameuse Street, the road bed which is
available for use by automobiles after construction of PREMIER's parking garage
and casino resort related facilities shall continue to have the same width, or
greater, currently available for vehicular traffic. The specific location of the
placement of support structures within this right of way must be approved by the
CITY.

     D.   PREMIER hereby warrants and guarantees that should the process of
constructing a support structure (whether constructed according to the original
plans or according to modifications approved by the CITY) cause damage to or
weaken the tie backs or structural integrity of said bulkhead or any other
improvement in the Commercial Fishermen's Harbor, then PREMIER shall repair or
cause to be repaired at its sale cost and expense such bulkhead or improvement,
and shall indemnify, defend, and hold harmless the CITY from any claim for
monetary damages, including attorney's fees, based upon the construction of the
Improvements.

     E.   The design for said Improvements shall comply substantially with the
plans provided to and reviewed and approved by the CITY in conjunction with
PREMIER's Master Plan for its gaming enterprise. Any significant revision in the
design or construction of the Improvements from these plans and specifications
must be approved by the CITY.

     F.   Until such time as PREMIER begins construction on its parking garage
to be located on the Leased Premises, the Leased Premises may continue to be
used by the public for

                                        4
<Page>

parking for the Commercial Fisherman's Harbor. After construction begins,
PREMIER shall be responsible for organizing and phasing construction in such a
way that access to and parking for the Commercial Fishermen's Harbor shall not
be interrupted and shall be maintained at the present levels to the maximum
extent possible. PREMIER may provide alternate access and parking on property
that it owns adjacent to and west of Lame use Street extended, and shall provide
such alternate parking at all times that existing parking for the Fisherman's
Harbor must be closed.

     G.   PREMIER shall maintain a total of 50 parking spaces for the exclusive
use of persons utilizing the Commercial Fishermen's Harbor. These parking spaces
shall be of a minimum width of nine feet and length of nineteen feet, and shall
include two parking spaces of dimensions which meet or exceed all local, state,
and federal requirements for the accommodation of parking for the handicapped.
They shall be located at ground level within the area bounded on the east by the
west margin of Main Street extended, on the west by the east margin of Lameuse
Street extended, on the south by the north bulkhead of the Commercial
Fishermen's Harbor, and on the north by the property of PREMIER. All of the
parking spaces along the north bulkhead of the Harbor shall be utilized for this
purpose, and the remaining spaces needed to satisfy this requirement shall be
located on the north margin of the Service Road Parcel. The CITY agrees to
dedicate all of the parking spaces along the North bulkhead of the Harbor for
this purpose, as well as the remaining spaces needed to satisfy this requirement
which are located on the North margin of the Service Road Parcel. The parties
agree that as many parking spaces as can be reasonably and safely configured in
those areas shall be so located, that they shall be dedicated and marked for the
exclusive use of the Commercial Fisherman's Harbor, and that they shall be
credited toward the fifty (50) parking spaces required herein. If in the
aggregate they do not total fifty (50) spaces, then PREMIER agrees to provide
the remaining parking spaces within its parking facilities in close proximity to
the Harbor.

     A sidewalk, a minimum width of five (5) feet, shall be maintained along the
North side of the harbor bulkhead from the East end of the North face of said
harbor bulkhead to the West end. Should PREMIER fail to provide or maintain said
parking spaces and sidewalk in accordance with specifications approved or
directed by the CITY, then the CITY may give PREMIER thirty (30) days' written
notice of the deficiency or default. If PREMIER shall fail to cure the
deficiency or default to the satisfaction of the CITY within said thirty (30)
day period, then the CITY may provide or maintain said parking spaces and the
cost thereof shall be due and payable as Additional Rent within thirty (30) days
after receiving written notification from the CITY of the CITY's expenditure.

     H.   PREMIER shall erect and maintain signage which clearly delineates at
least the number of parking spaces specified herein for the exclusive use of the
public using or visiting the Commercial Fishermen's Harbor. The type, size, and
location of this signage, as well as the number of signs, must be approved by
the CITY. Should PREMIER fail to provide or maintain such signage in accordance
with specifications approved or directed by the CITY, then the CITY may give
PREMIER 30 days written notice of the deficiency or default. If PREMIER shall
fail to cure the deficiency or default to the satisfaction of the CITY within
said 30 day period, then the CITY may provide or maintain such signage and the
cost thereof shall be due and payable as Additional Rent within 30 days after
receiving written notification from the CITY of the CITY's expenditure.

                                        5
<Page>

     I.   PREMIER shall provide continuous security for those parking spaces as
well as that part of the CITY's property which is covered by PREMIER's
structures pursuant to air rights granted by the CITY. It shall be the duty of
PREMIER to direct its security personnel to enforce the reservation of the
parking spaces for the harbor by requiring its patrons to vacate such parking
space and remove their vehicle to PREMIER's parking facility. Should PREMIER
fail to provide or maintain said security services in accordance with this
agreement, then the CITY may give PREMIER 30 days written notice of the
deficiency or default. If PREMIER shall fail to cure the deficiency or default
to the satisfaction of the CITY within said 30 day period, then the CITY may
provide or maintain such security services and the cost thereof shall be due and
payable as Additional Rent within 30 days after receiving written notification
from the CITY of the CITY's expenditure.

     J.   In the event PREMIER elects to exercise its option to acquire the
interest of Joe and Charmaine Lancon under the Lease, LANDLORD consents to the
assignment of the lease for the Fishermen's Harbor Restaurant from Joe and
Charmaine Lancon to PREMIER, and upon such assignment PREMIER shall continue
with all of the rights and obligations of the TENANT under that lease except as
hereinafter provided. The CITY agrees that PREMIER may, at its own expense,
remove the improvements at that site by paying the CITY a sum to be determined
by appraisal as required by law as compensation for the loss of the CITY's
asset, payable in five (5) equal annual installments, plus interest accruing at
the rate of 6% per annum, beginning on the first day of the month after a
demolition permit is issued. If PREMIER elects to remove the structure, the CITY
agrees to terminate said lease and dedicate the space for public parking and
turn around, and PREMIER agrees to make, at its own expense, all improvements
necessary to utilize and maintain the space in that manner.

                                    SECTION 4
                              TERM AND COMMENCEMENT

     A.   The primary terms of this Lease shall commence on December 15, 2003
(the "Commencement Date"), and shall continue for forty (40) years. TENANT may
extend this Lease for one (1) extended term of twenty-five (25) years by giving
LANDLORD written notice of the intent to exercise such option. Such notice must
be received by LANDLORD at least six (6) months prior to the termination of each
option period thereafter for the exercise of each succeeding option period,
provided, however.

     B.   Upon the execution date, PREMIER shall be liable for payment of all
sums and charges which become due hereunder (including but not limited to Basic
Rent, and all other sums and charges which are required to be paid by PREMIER
hereunder) in accordance with specific provisions contained herein addressing
the timing of rental payments. All sums payable hereunder other than Basic Rent
amounts shall be due and payable within a reasonable time, not to exceed thirty
(30) days after receipt of an invoice as provided for herein or as otherwise
specified herein.

                                        6
<Page>

                                    SECTION 5
                      EXCUSE OF PERFORMANCE - FORCE MAJEURE

     Anything elsewhere in this Lease to the contrary notwithstanding, neither
party shall be deemed in default with respect to the performance of any of the
non-monetary obligations, terms, covenants and conditions of this Lease to be
performed by it if any failure of its performance shall be due to any Force
Majeure (which is defined as any Act of God, strike, war, rebellion,
hostilities, military or usurped power, terrorism, sabotage, government
regulations or controls, inability to obtain any material through Act of God, or
any other cause whatever beyond the control of that party), and the time for
performance by that party shall be extended by the period of delay resulting
from or due to any above said causes.

                                    SECTION 6
                                   BASIC RENT

     A.   For the first year of the term of the Lease, the Basic Rent shall be
$1.00. For the next four (4) years of the Lease, Basic Rent shall be $12,500.00
per month, and the first such payment shall be due on the first day of the
twelfth month following the Commencement Date. Thereafter, rent shall be due on
the first day of each month (i.e. Commencement Date is December 15, 2003,
therefore, the first Basic Rent payment is due on December 1, 2004). Basic Rent
shall increase beginning on the fifth anniversary date of the execution of the
Lease and continuing on each fifth anniversary date that follows for the
remainder of the term of the Lease. The amount of Basic Rent after that increase
shall be the Basic Rent payable at the end of the previous five (5) year period
(being $12,500.00 per month for the first such adjustment) increased by the
increase in the Consumer Price Index, all Urban Consumers from the "South Urban"
area (base period 1982-84 = 100), as promulgated by the U.S. Department of Labor
or successor entity, for the previous five year period.

     B.   All rental payments provided above shall be payable to LANDLORD at
CITY Hall, 140 Lameuse Street, Biloxi, Mississippi, 39530, without any demand
therefor, and without any deduction or set-off whatsoever. LANDLORD may charge
interest of all past-due payments of base rental in accordance with the
provisions of Section 36.

                                    SECTION 7
               ADDITIONAL RENT AND OTHER OBLIGATIONS OF THE TENANT

     A.   Section 7 A is deleted in its entirety.

     B.   TENANT shall pay all other sums of money or charges required to be
paid by TENANT to LANDLORD under this Lease, whether or not the same be
designated "rent." These amounts and charges shall be due and payable within a
reasonable time, not to exceed thirty (30) days after receipt by the TENANT of
an invoice therefore (excluding "Basic Rent", which shall be due and payable in
the same time and manner provided in Section 6, above). All sums of money or
other charges payable by TENANT under this section shall be payable at such
place as is set forth in this Lease, without any set-off or deduction
whatsoever. LANDLORD may charge interest on all such past-due payments owed by
TENANT, regardless of whether they are designated as Additional Rent, in
accordance with the provisions of this Lease.

                                        7
<Page>

     C.   As an additional obligation, TENANT, at its sole expense, shall
maintain Lameuse Street as extended south from the south margin of U.S. Highway
90 to the bulkhead of the Commercial Fishermen's Harbor (near the harbor
master's structure).

     D.   As an additional obligation, TENANT, at its sole expense, shall
maintain Service Road Parcel which extends from the east margin of Lameuse
Street extended to the west margin of Main Street extended.

     E.   As an additional obligation, TENANT, at its sole expense, shall widen
or cause to be widened Main Street as extended south from U.S. Highway 90 to the
north bulkhead of the Commercial Fishermen's Harbor in order to align the west
margin of Main Street south of U.S. Highway 90 with the existing west margin of
Main Street north of U.S. Highway 90. TENANT shall convey to the CITY all
necessary right, title, and interest in the real property described in the
survey designated as Exhibit "E", as depicted as Parcel 8 on Exhibit "H", which
is attached hereto and made a part hereof, to enable the widened Main Street to
be a dedicated public street.

     F.   As an additional obligation, TENANT, at its sole expense, shall widen
or cause to be widened the Service Road Parcel from the west margin of Main
Street extended to the east margin of Lameuse Street extended. TENANT shall
convey to the CITY, subject to a reservation of a leasehold estate in the
Airspace conveyed to TENANT in this Lease, together with easements on ground
space for structural support purposes and easements as contemplated in Section
2A and 3A, all necessary right, title, and interest in the real property
described in the survey designated as Exhibit "D" as depicted as Parcel 4 on
Exhibit "H", which is attached hereto and made a part hereof, to enable the CITY
to dedicate the Service Road Parcel as described in the survey designated as
Exhibit "C" as a public street and public parking (subject to reservations for
harbor parking as provided herein).

     G.   As an additional obligation, TENANT, at its sole expense shall cause
all public utilities in the Leased Premises, the expanded portion of Main
Street, Lameuse Street south of US. Highway 90 and the widened the Service Road
Parcel to be relocated in order to permit the improvements contemplated by this
Lease. The relocation of all such utilities and the construction and widening of
the above referenced streets shall be performed subject to the inspection and
approval by the CITY and in accordance with existing standards for relocation
and construction of public utilities and streets. TENANT shall convey to the
CITY all necessary right, title, and interest in the real property described in
the survey designated as Exhibit "F" as depicted as Parcel 7 on Exhibit "H",
which is attached hereto and made a part hereof, for the relocation of traffic
signalization equipment caused by the widening of Main Street. Said relocation
shall be included in the expense of the widening of Main Street to be paid by
TENANT. Said signalization equipment shall be set back from U.S. Highway 90 as
far as is reasonably possible, and must not obstruct the sidewalks adjacent to
said Highway or Main Street.

                                    SECTION 8
                                 PROPERTY TAXES

     PREMIER shall be responsible for and shall pay before delinquency all
taxes, including special assessments, assessed during the term of this Lease
against PREMIER's leasehold

                                        8
<Page>

interest in the Leased Premises and Airspace, against all improvements on the
Leased Premises and in the Airspace, and against personal property of any kind
placed in, upon or about the Leased Premises or in the Airspace by TENANT or its
licensees, concessionaires, assigns, and subtenants.

                                    SECTION 9
                         LIMITS ON LIABILITY - INSURANCE

     LANDLORD shall not be liable to TENANT or to any of its employees, agents,
invitees, visitors, or any other person whomsoever, for any damage to person or
damage to property on or about the Leased Premises or Airspace caused by the
negligence or misconduct of TENANT, its employees, licensees, concessionaires,
or any other person entering the Leased Premises or Airspace, either under
express or implied invitation of TENANT, or arising out of the use of the Leased
Premises or Airspace by TENANT, or arising out of the conduct of TENANT's
business therein, or arising out of any breach or default by TENANT in the
performance of its obligations hereunder, and TENANT hereby agrees to indemnify,
defend, and hold LANDLORD harmless from any loss, expense or claim, including
attorneys' fees, arising out of any damage or injury or claim for damage or
injury.

                                   SECTION 10
                           PUBLIC LIABILITY INSURANCE

     TENANT shall, during the entire term of this Lease and any extension
hereof, keep in full force and effect a policy of public liability and property
damage insurance with respect to the Leased Premises, the Airspace, the property
under the Airspace, and the business operated by TENANT and any subTENANTs of
TENANT on the Leased Premises and the Airspace in which the limits of public
liability shall not be less than One Million Dollars ($1,000,000.00) per person
and Three Million Dollars ($3,000,000.00) per incident and in which the property
damage liability shall be not less than One Hundred Thousand Dollars
($100,000.00). The policy shall insure against all claims, demands or actions
arising out of or in connection with the use and occupancy of the Leased
Premises, the Airspace, and the surface area under the Airspace by TENANT or its
employees, licensees, concessionaires, subTENANTs, or any other person entering
the Leased Premises or the Airspace either under express or implied invitation
of TENANT, or arising out of the use of the Leased Premises or the Airspace by
TENANT, its employees, licensees, concessionaires, subTENANTs, or any other
person or corporation by express or implied invitation of TENANT, or by the
condition of the Leased Premises or improvements located either therein or in
the Airspace. The policy shall name LANDLORD, any person, firms or corporations
designated by LANDLORD, and TENANT as insured and shall contain a clause that
the insurer will not cancel or change the insurance without first giving
LANDLORD ten (10) days' prior written notice. A copy of the policy or a
certificate of insurance shall be delivered to LANDLORD.

                                   SECTION 11
                           FIRE AND CASUALTY INSURANCE

     TENANT shall keep the improvements on the Leased Premises and the Airspace
insured throughout the term(s) of this Lease against loss or damage by fire and
such other risks as may

                                        9
<Page>

be included in the broadest form of extended coverage insurance from time to
time available in such amounts sufficient to prevent LANDLORD from becoming a
co-insurer within the terms of applicable policies and, in any event, in an
amount not less than eighty percent (80%) of the then insurable value of the
improvements on the Leased Premises and Airspace. LANDLORD shall be named in all
such policies of insurance as a named insured as its interest may appear.

                                   SECTION 12
                        TENANT SHALL DISCHARGE ALL LIENS

     TENANT shall promptly pay all its contractors and materialmen, so as to
minimize the possibility of a lien attaching to the Leased Premises and
improvements occupying the Airspace; and should any such lien be made or filed,
TENANT shall bond against or discharge the same within ten (10) days after
written request by LANDLORD.

                                   SECTION 13
                             USE OF LEASED PREMISES

     A.   TENANT shall not use, permit or suffer the use of the Leased Premises,
Airspace, or any part thereof for any purpose other than for parking facilities
(a parking garage and surface parking and elevated walkover) to be utilized in
conjunction with the TENANT's resort hotel facilities, either casino related or
otherwise, and those activities which are ancillary to a resort hotel, provided
that such use is also in compliance with applicable zoning laws; provided
further that gaming is not authorized on the property used to define the
Airspace or in the Airspace, nor shall gaming be authorized on the Leased
Premises (except to the extent hereinafter provided), and TENANT agrees that the
Leased Premises are leased exclusively for said business and commercial
purposes. Although gaming is not authorized on or from the Leased Premises,
TENANT may operate the commercial enterprises authorized by this Lease in
physical connection with or connection to its authorized gaming activities.

     B.   The CITY acknowledges that Lameuse Street south of US. Highway 90 and
the Service Road Parcel will each have to be temporarily closed at various times
in order to ensure public safety when construction activities at those sites
require it. TENANT acknowledges that those two access routes are the only means
of vehicular access to the perimeter of Commercial Fishermen's Harbor. The CITY
agrees to work with TENANT in coordinating those temporary closings in order to
ensure public safety, however, TENANT shall not be permitted to temporarily
close off either road until a minimum often (10) days notice has been provided
to the CITY; further TENANT shall not be permitted to close both roads (Lameuse
Street south of Highway 90 and the Service Road Parcel) at the same time, but
shall alternate street closings to ensure continuous access to said harbor.
Pedestrian access to the north bulkhead of the harbor must be maintained at all
times.

                                   SECTION 14
            MAINTENANCE OF STRUCTURES; LANDLORD'S RIGHT TO INTERVENE

     A.   TENANT shall keep all structures in the Leased Premises and in the
property under the Air Spaces in good repair so as to be safe and present no
hazard or danger to users of

                                       10
<Page>

the public rights of way and harbor facilities located under or adjacent to the
TENANT's structures.

     B.   If TENANT refuses or neglects to repair property as required hereunder
and to the reasonable satisfaction of LANDLORD as soon as reasonably possible
after written demand, LANDLORD may make such repairs without liability to TENANT
for any loss or damage that may accrue to TENANT's merchandise, fixtures or
other property or to TENANT's business by reason thereof; and upon completion
thereof, TENANT shall pay LANDLORD's cost for making such repairs, upon
presentation of a bill therefor, as additional rent. This provision shall be
construed as a right of LANDLORD and not an obligation. LANDLORD shall have the
option to exercise this right in its sole discretion or may elect any other
remedy available to it, but in no event shall this be construed as an obligation
of LANDLORD to any third party or subtenant of TEN ANT.

                                   SECTION 15
           SURRENDER OF LEASED PREMISES, TRADE FIXTURES, IMPROVEMENTS

     A.   TENANT may remove all its detachable and movable trade fixtures
brought in by TENANT before surrendering the Leased Premises at end of the term,
and shall repair any damage to the Leased Premises and the property under the
Airspace caused thereby. Any such trade fixtures not removed by TENANT prior to
surrender of possession, at the option of LANDLORD, either shall become the
property of LANDLORD or may be removed by LANDLORD at the expense of TENANT.
TENANT agrees to pay for the removal of any such abandoned trade fixtures, and
this obligation of TENANT to remove or pay for such removal shall survive the
expiration or termination of the possessory rights of TENANT created by this
Lease and the expiration or other termination of this Lease.

     B.   All alterations, additions, improvements and fixtures (other than
detachable and movable trade fixtures) which may be made or installed by TENANT
upon the Leased Premises and the Airspace and the property below the Airspace
shall remain upon and be surrendered with the Leased Premises and the Airspace
and become the property of LANDLORD at the termination or cancellation of this
Lease, unless LANDLORD requests their removal by TENANT prior to the termination
of this Lease, in which event TENANT shall remove the same at TENANT's expense.
All such alterations, additions, improvements and fixtures not requested by
LANDLORD to be removed prior to surrender of possession shall become the
property of LANDLORD without credit or compensation to TENANT; all such
alterations, additions, improvements and fixtures which LANDLORD has requested
TENANT to remove but which have not been removed prior to surrender of
possession may be removed by LANDLORD at the expense of TENANT. LANDLORD agrees
to give TENANT written notice under within thirty (30) days after the
termination of this Lease of its intent to remove any such alterations,
additions, improvements and fixtures at the expense of TENANT and to remove such
items in a reasonable amount of time thereafter commensurate with the difficulty
and expense of such removal. TENANT agrees to pay for the removal of any such
alterations, additions, improvements and fixtures, and this obligation of TENANT
to remove or pay for such removal shall survive the expiration or termination of
the possessory rights of TENANT created by this Lease and the expiration or
other termination of this Lease.

                                       11
<Page>

                                   SECTION 16
                              LANDLORD'S DISCLAIMER

     LANDLORD shall be under no liability to replace, repair, maintain, alter or
take any other action with reference to the Leased Premises, the Airspace, or
the property under the Airspace, or any part thereof, or any plumbing, heating,
cooling, gas, electrical or other mechanical installation therein.

                                   SECTION 17
                           INDEMNIFICATION OF LANDLORD

     TENANT will indemnify, defend, and hold LAND LORD harmless from and against
any and all claims, actions, damages, liability and expense in connection with
loss of life, personal injury, and/or damage to property arising from or out of
any occurrence in, upon or at the Leased Premises, the Airspace, and the
property under the Airspace, or the occupancy or use by TENANT of the Leased
Premises, the Airspace, or the property under the Airspace, or any part thereof,
occasioned wholly or in part by any act or omission of TENANT, its agents,
contractors, employees, servants, lessees or concessionaires. In case LANDLORD
shall, without having committed any willful act or act of gross negligence on
its part, be made a party to any litigation commenced by or against TENANT, then
TENANT shall defend, protect, and hold LANDLORD harmless and shall pay all
costs, expenses and reasonable attorney's fees incurred or paid by LANDLORD in
connection with such litigation.

                                   SECTION 18
                         CONNECTION AND USE OF UTILITIES

     TENANT shall, at its sole expense, arrange for the entry and connection of
all necessary utility services to the Leased Premises and Airspace. TENANT shall
pay all charges for water, sewage service, fuels, electricity, steam, gas,
telephone service and other utilities used in or at the Leased Premises and
Airspace for any purpose.

                                   SECTION 19
                      OFFSET STATEMENT/ESTOPPEL CERTIFICATE

     Within ten (10) days after request therefor by LANDLORD (or in the event
that upon any sale, assignment, or hypothecation of the Leased Premises or the
property under the Airspace by LANDLORD, an offset statement or estoppel
certificate shall be required from TENANT), TENANT agrees to deliver in
recordable form a certificate to any proposed mortgagee or purchaser, or to
LANDLORD, certifying (if such be the case) that this Lease is in full force and
effect and that there are no defenses or offsets thereto, or stating those
claimed by TENANT.

                                   SECTION 20
                                   ATTORNMENT

     TENANT shall, in the event any proceedings are brought for the foreclosure
of, or in the event of exercise of the power of sale under, any mortgage or deed
of trust made by LANDLORD covering the Leased Premises or the property under the
Airspace, attorn to the purchaser upon any such foreclosure or sale and
recognize such purchaser as LANDLORD under

                                       12
<Page>

this Lease, provided TENANT either receives a non-disturbance agreement from the
purchaser reasonably satisfactory to TENANT or such a provision is included in
any applicable deed of trust and is in effect upon such attornment.

                                   SECTION 21
                                  SUBORDINATION

     LANDLORD reserves the right to subject and/or subordinate its interest in
this Lease at all times to the lien of any mortgage or deed of trust now or
hereafter placed upon LANDLORD's interest in the Leased Premises or property
under the Airspace, or upon the land or premises of which the Leased Premises
and property under the Airspace are a part, or upon any building now or
hereafter placed by LANDLORD upon the land of which the Leased Premises forms a
part, and to all advances made or hereafter to be made upon the security
thereof, all without the necessity of TENANT joining in any such subordination;
however, upon request of LANDLORD, TENANT shall execute and deliver such further
instrument evidencing TENANT's consent to the subordination by LANDLORD of its
interest in this Lease as LANDLORD may reasonably request, provided LANDLORD's
proposed lender executes a non-disturbance agreement reasonably satisfactory to
TENANT. It is further understood and agreed, however, that neither such
subordination of LANDLORD' s interest, nor any foreclosure of any such mortgage
or deed of trust, shall affect TENANT's right to continue in possession of the
Leased Premises or use of the Airspace under the terms of this Lease so long as
TENANT shall not default in the performance of TENANT's obligations hereunder.

                                   SECTION 22
                         CONSENT REQUIRED FOR ASSIGNMENT

     TENANT may not assign this Lease in whole or in part, or sublet all or any
part of the Leased Premises or Airspace, without the prior written consent of
LANDLORD, which consent shall not be unreasonably withheld. The consent by
LANDLORD to any assignment or subletting shall not constitute a waiver of the
necessity for such consent to any subsequent assignment or subletting. This
prohibition against assigning or subletting shall be construed to include a
prohibition against any assignment or subletting by operation of law or
otherwise. If this Lease is assigned or if the Leased Premises or any part
thereof be underlet or occupied by anybody other than TENANT pursuant to said
written consent of LANDLORD, LANDLORD may collect rent from the assignee, under
TENANT or occupant, and apply the net amount collected to the rent herein
reserved, but no such assignment, underletting, occupancy or collection shall be
deemed a release of TENANT from the further performance by TENANT of covenants
on the part of TENANT herein contained. After any approved assignment or
sublease, TENANT shall remain fully liable on this Lease and shall not be
released from liability for performing any of the terms, covenants and
conditions of this Lease and such release unless specifically released in
writing therefrom by LANDLORD. Provided the successor to the TENANT continues to
satisfy or perform all obligations of the TENANT under the Lease (subject to all
applicable cure periods set forth herein and in Exhibit "I"), and continues to
utilize the Lease Premises in conjunction with a gaming enterprise and/or resort
hotel, the foregoing restriction shall not apply to (i) any future assignment by
TENANT to a successor organization in a merger, consolidation or similar
reorganization, (ii) an assignment or other transfer to an entity that controls,
is controlled by, or is under common control with TENANT; or (iii) an

                                       13
<Page>

assignment or other transfer of TENANT's interest in the Lease, the Leased
Premises and easements conveyed by this Lease (including a transfer by mortgage
or deed of trust) by TENANT to an institutional lender, or to an institutional
trustee on behalf of one or more lenders or note holders (such lender of
trustee, "Lender"), in connection with financing for the improvements to be
constructed on the Leased Premises and the hotel and casino to be located on
certain other premises owned or leased by TENANT. TENANT agrees to notify
LANDLORD of any such future assignment or transfer within thirty (30) days of
same. The provisions set forth in Exhibit "I" attached hereto relating to the
rights and protections of Lender are incorporated herein and made a part of the
lease. The CITY agrees that a Leasehold Mortgagee as defined in Exhibit "I" and
having a mortgage or other security interest in the Leased Premises shall have
all of the rights and protections set out in Exhibit "I".

                                   SECTION 23
                       BENEFITS AND BURDENS ON ASSIGNMENT

     This Lease and agreement and the covenants and conditions herein contained
shall inure to the benefit of and be binding upon LANDLORD, its successors and
assigns, and shall be binding upon TENANT, its heirs, successors and assigns,
and shall inure to the benefit of TENANT and only such assigns of TENANT to whom
the assignment by TENANT has been consented to in writing by LANDLORD which
consent shall not be unreasonably withheld. Nothing contained in this Lease
shall in any manner restrict LANDLORD's right to assign or encumber this Lease
in its sale discretion.

                                   SECTION 24
                            GOVERNMENTAL REGULATIONS

     TENANT shall, at TENANT's sole cost and expense, comply with all of the
requirements of all county, municipal, state, federal and other applicable
governmental authorities, now in force, or which may hereafter be in force,
pertaining to said Leased Premises, the Airspace, and the property under the
Airspace, and shall faithfully observe in the use thereof all municipal and
county ordinances and state and federal statutes now in force or which may
hereafter be in force.

                                   SECTION 25
                               TENANT'S COVENANTS

     TENANT agrees that in all hiring or employment made possible by or as a
result of this Lease contract, (a) there will not be any discrimination against
any employee or applicant for employment because of race, color, religion, age,
sex or national origin; and (b) affirmative action will be taken to ensure that
applicants are employed and that employees are treated during employment without
regard to their race, color, religion, sex or national origin. This
non-discrimination requirement shall apply to employment, upgrading, demotion or
transfer, recruitment or recruitment advertising, layoff or termination, rates
of payor other forms of compensation, and selection of training, including
apprenticeships, and also to any and all other areas of employment in which
discrimination could be prevalent. All solicitations or advertisements for
employees shall state that all qualified applicants will receive consideration
for employment without regard to race, color, religion, age, sex or national
origin.

                                       14
<Page>

                                   SECTION 26
                               NON-DISCRIMINATION

     TENANT agrees that no person in the United States shall, on the ground of
race, color, religion, sex or national origin, be excluded from participation
in, be denied the benefits of or be subject to discrimination under any program
or activity made possible by or resulting from this Lease contract. TENANT shall
comply with all requirements imposed by or pursuant to Title VI of the Civil
Rights Act of 1964.

                                   SECTION 27
                                 FLOOD INSURANCE

     TENANT shall, if the Leased Premises or the area under the Airspace are
located in an area identified by the HUD Secretary as a special flood hazard
area and in which the sale of flood insurance has been made available under the
National Flood Insurance Act of 1968, as amended, 42 U.S.C. 4001, et. seq.,
carry flood insurance insuring the Leased Premises. Said insurance shall name
LANDLORD as an additional insured.

                                   SECTION 28
                         DESTRUCTION OF LEASED PREMISES

     A.   In the event that the improvements to the Leased Premises or in the
Airspace necessary for the operation of TENANT's business shall be damaged or
destroyed by fire or other casualty insurable under standard fire and extended
coverage insurance, TENANT shall proceed with reasonable diligence and at its
sole cost and expense to rebuild and repair those improvements on the Leased
Premises, and the Airspace as hereinafter provided.

     B.   TENANT's obligation to rebuild and repair under this article shall in
any event be limited to restoring the improvements to the Leased Premises and
Airspace to substantially the condition in which the same existed prior to the
casualty, and TENANT agrees that, promptly after completion of such work, it
will proceed with reasonable diligence and at its sole cost and expense to
rebuild, repair and restore its sign, fixtures, equipment and other ancillary
improvements necessary to conduct the business or businesses contemplated by
this Lease.

     C.   TENANT shall be excused from the requirement to rebuild the
improvements to the Leased Premises as provided in this section if such
destruction takes place within the last three (3) years of the primary term of
this Lease, or within the last two (2) years of any option period; provided,
that TENANT's choice not to reconstruct said improvements shall not excuse
TENANT from its obligations to pay rent under this Lease; and, provided further,
that should TENANT elect not to rebuild the improvements under the circumstances
provided herein, TENANT shall remove all improvements, or the remains thereof,
within four (4) months of the casualty.

     D.   TENANT shall be excused from. the requirement to rebuild the
improvements in the event that a Lender or noteholder or lenders on whose behalf
of Lender hold a mortgage or lien in the Leased Premises accelerates TENANT's
obligations and succeeds in the interest of the TENANT in this Lease; provided,
however, that if such successor TENANT elects not to rebuild

                                       15
<Page>

the Improvements, it must remove all improvements, or the remnants thereof,
within twelve (12) months of the casualty.

                                   SECTION 29
                       EMINENT DOMAIN; TOTAL CONDEMNATION

     If the whole of the Leased Premises and the TENANT's air rights under this
Lease shall be acquired or condemned by any qualified condemning authority other
than LANDLORD or its successors or assigns through eminent domain proceedings
for any public or quasi-public use or purpose, then the term of this Lease shall
cease and terminate as of the date of title vesting in such proceeding, and all
rentals shall be paid up to that date, and TENANT shall have no claim against
LANDLORD for the value of any unexpired term of this Lease. TENANT shall have
the right to assert a claim in any such condemnation proceeding for all
compensation it is entitled to under the laws of the State of Mississippi and
the Constitution and laws of the United States of America.

     The term "acquired or condemned through eminent domain proceedings for any
public or quasi-public use" as used throughout this Lease shall include a sale
or transfer to such body under threat of eminent domain or condemnation.

                                   SECTION 30
                      EMINENT DOMAIN; PARTIAL CONDEMNATION

     A.   If any part of the Leased Premises or the TENANT's air rights under
this Lease shall be acquired or condemned by any qualified condemning authority
other than LANDLORD or its successors or assigns, through eminent domain
proceedings for any public or quasi-public use or purpose, and in the event such
partial taking or condemnation shall render the Leased Premises and the TENANT's
air rights under this Lease unsuitable for the business of TENANT, then the term
of this Lease shall cease and terminate as of the date of title vesting in such
proceeding, and all rental shall be paid up to that date, and TENANT shall have
no claim against LANDLORD for the value of any unexpired term of this Lease.
TENANT shall have the right to assert a claim in any such condemnation
proceeding for all compensation it is entitled to under the laws of the State of
Mississippi and the Constitution and laws of the United States of America.

     B.   In the event of a partial taking or condemnation which is not
extensive enough to render the Leased Premises or the TENANT's air rights under
this Lease unsuitable for the business of TENANT, then TENANT shall give written
notice to LANDLORD within fourteen (14) days of such acquisition that it will
restore the Leased Premises or the property subject to the TENANT's air rights
to a condition comparable to that existing at the time of such acquisition or
condemnation less the portion lost in the taking and shall within ninety (90)
days from the date of title vesting restore the Leased Premises or the property
subject to the TENANT's air rights to a condition comparable to that existing at
the time of such acquisition or condemnation less the portion lost in the
taking. In that event, this Lease shall continue in full force and effect and
the Basic Rent, but not any other charge payable by TENANT hereunder as rent or
additional rent, shall be reduced proportionately.

                                       16
<Page>

                                   SECTION 31
                               CONDEMNATION AWARD

     Subject to the paramount and prior rights to the condemnation award, if
any, of the holder of any mortgage, such condemnation award (whether in respect
to total or partial taking of the Leased Premises, as improved) shall be divided
between LANDLORD and TENANT in proportion to the fair market value of their
respective interests in the Leased Premises, as improved, as provided by law;
accordingly, the portion of the award attributable to TENANT's leasehold
interest as lessee shall be received by TENANT, and the portion of the award
attributable to LANDLORD's interest as lessor, if applicable, shall be received
by LANDLORD.

                                   SECTION 32
                                 LOSS AND DAMAGE

     A.   LANDLORD shall not be liable for any damage to property of TENANT or
subtenant or the property of others entrusted to TENANT or to employees of
TENANT nor for the loss of or damage to any property of TENANT by theft or
otherwise.

     B.   LANDLORD shall not be liable for any injury or damage to persons or
property resulting from: fire, explosion, steam, gas, electricity, water, wind,
rain, or snow; or leaks from any part of the Leased Premises or from the pipes
or plumbing works, or from the street or subsurface or from any other place, or
by dampness or by any other cause of whatsoever nature.

     C.   LANDLORD shall not be liable for any such damage caused by other
tenants or persons in the Leased Premises or the Airspace, occupants of adjacent
property, or the public, or caused by operations in construction of any private,
public or quasi-public work.

     D.   LANDLORD shall not be liable for any latent defect in the Leased
Premises. All property of TENANT kept or stored on the Leased Premises or in the
Airspace shall be so kept or stored at the risk of TENANT only, and TENANT shall
indemnify, defend, and hold LANDLORD harmless from any claims arising out of
damage to the same, including subrogation claims by TENANT's insurance carriers,
unless such damage shall be caused by the willful act or gross neglect of
LANDLORD.

     E.   In case LANDLORD shall, without having committed any willful act or
gross negligence on its part, be made a party to any litigation regarding losses
or damages described in this section, then TENANT shall indemnify, defend, and
hold LANDLORD harmless and shall pay all costs, expenses and reasonable
attorneys' fees incurred or paid by LANDLORD in connection with such litigation,
and TENANT shall also pay all costs, expenses and reasonable attorneys' fees
that may be incurred or paid by LANDLORD pursuant to the enforcement of any of
the covenants and agreements in this Lease.

                                   SECTION 33
                                     DEFAULT

     A.   In the event of any failure of TENANT to pay (i) any Base Rent or
additional rental due hereunder within ten (10) days after the same shall become
due; (ii) any ad valorem tax to be paid by TENANT or its subtenant pursuant to
this Lease within thirty (30) days after it

                                       17
<Page>

becomes due; (iii) any additional rental due hereunder within ten (10) days;
(iv) any other amount or sum due hereunder, regardless of whether it is
designated as additional rent, within ten (10) days; all after receipt by TENANT
of written notice that same shall become due; then TENANT shall be deemed to be
in default hereunder and to have committed a breach hereof.

     B.   In the event TENANT fails to perform any other of the terms,
conditions or covenants of this Lease (other than the payment of money or rent
as specified in subparagraph (A) above) and such failure is not remedied within
thirty (30) days after written notice of such default shall have been given to
TENANT, then TENANT shall be deemed to be in default hereunder and to have
committed a breach hereof. The thirty (30) day period shall be suspended if
TENANT has begun to cure or remedy such failure and cannot with due diligence
cure said default within the thirty (30) day period; provided, however, TENANT
must continue to exercise due diligence in completing the cure or remedy of any
such non-monetary default or failure, and the thirty (30) day period shall be
suspended only so long as TENANT continues to diligently complete said cure or
remedy.

     C.   The foregoing notwithstanding, if: TENANT or an agent of TENANT shall
falsify any report required to be furnished to LANDLORD pursuant to the terms of
this Lease; or TENANT or any guarantor of this Lease makes an assignment for the
benefit of creditors, or petitions for or enters into an arrangement; or TENANT
shall abandon said Leased Premises, or suffer this Lease to be taken under any
writ of execution; then TENANT shall be deemed to be in default hereunder and to
have committed a breach hereof.

     D.   LANDLORD may cancel and terminate this Lease if at any time during the
term or any extension thereof a petition in bankruptcy or insolvency, for
reorganization or for the appointment of a receiver or trustee of all or a
portion of TENANT's property is filed by or against TENANT or any guarantor of
this Lease in any court under any federal or state statute, and within ninety
(90) days thereafter TENANT or any guarantor of this Lease fails to secure a
discharge thereof or provide LANDLORD adequate assurance, satisfactory to
LANDLORD, that all of TENANT's obligations under this Lease will be met, or if
TENANT or any guarantor of this Lease makes an assignment for the benefit of
creditors or petitions for or enters into an arrangement for discharge of debt.
LANDLORD shall exercise its right to cancel and terminate within a reasonable
time after it receives notice that any of the above events have occurred. If
LANDLORD exercises such right, neither TENANT nor any person claiming through or
under TENANT by virtue of any statute, court order or agreement shall be
entitled to possession or to remain in possession of the Leased Premises and the
TENANT's air rights but shall forthwith quit and surrender the premises; and
LANDLORD, in addition to the other rights and remedies it has by virtue of any
other provision contained in this Lease or any statute or rule of law, may
retain as liquidated damages any rent, security, deposit or monies received by
it from TENANT or others on TENANT's behalf.

     E.   In the event LANDLORD fails to perform any of the terms, conditions or
covenants of this Lease to be observed or performed by LANDLORD for more than
thirty (30) days after written notice of such default shall have been given to
LANDLORD, TENANT shall be entitled to pursue any and all remedies at law or in
equity to which it may be entitled to enforce such obligation of LANDLORD. The
thirty (30) day period shall be suspended if LANDLORD has begun to cure or
remedy such failure and cannot with due diligence cure said

                                       18
<Page>

default within the thirty (30) day period; provided, however, LANDLORD must
continue to exercise due diligence in completing the cure or remedy of any such
non-monetary default or failure, and the thirty (30) day period shall be
suspended only so long as LANDLORD continues to diligently complete said cure or
remedy.

     F.   PREMIER shall not be deemed to be in default under any provision of
the Lease, and LANDLORD shall not be entitled to exercise any remedies under
Section 34, unless a default is deemed to have occurred and is continuing under
sub-sections 33A and 33B.

                                   SECTION 34
                                    REMEDIES

     A.   In the event of any default hereof by TENANT, LANDLORD, besides other
rights or remedies it may have, shall, subject to the process of law, have the
immediate right of re-entry and may remove all persons and property from the
Leased Premises and the Airspace, and such property may be removed and stored in
a public warehouse or elsewhere at the cost of and for the account of TENANT,
all without service of notice and without being deemed guilty of trespass or
becoming liable for any loss or damage which may be occasioned thereby.

     B.   Should LANDLORD elect to re-enter, as herein provided, or should it
take possession pursuant to legal proceedings or pursuant to any notice provided
for by law, it may either terminate this Lease or it may from time to time
without terminating this Lease make such alterations and repairs as may be
necessary in order to relet the Leased Premises and/or Airspace, and relet said
Leased Premises and/or Airspace or any part thereof for such term or terms
(which may be for a term extending beyond the term of this Lease) and at such
rental or rentals and upon such other terms and conditions as LANDLORD in its
sole discretion may deem advisable; upon each such reletting all rentals
received by LANDLORD from such reletting shall be applied, first, to the payment
of any indebtedness other than rent due hereunder from TENANT to LANDLORD;
second, to the payment of any costs and expenses of such reletting, including
brokerage fees and attorneys' fees and of costs of such alterations and repairs;
third, to the payment of rent due and unpaid hereunder; and the residue, if any,
shall be held by LANDLORD and applied in payment of future rent as the same may
become due and payable hereunder. If such rentals received from such reletting
during any month be less than that to be paid during that month by TENANT
hereunder, TENANT shall pay any such deficiency to LANDLORD. Such deficiency
shall be calculated and paid monthly. No such re-entry or taking possession of
said Leased Premises or the Airspace by LANDLORD shall be construed as an
election on its part to terminate this Lease unless a written notice of such
intention be given to TENANT or unless the termination thereof be decreed by a
court of competent jurisdiction. Notwithstanding any such reletting without
termination, LANDLORD may at any time thereafter elect to terminate this Lease
for such previous breach.

     C.   Should LANDLORD at any time terminate this Lease for any breach, in
addition to any other remedies it may have, it may recover from TENANT all
damages it may incur by reason of such breach, including the cost of recovering
the Leased Premises and the Airspace, reasonable attorneys' fees, and including
the worth at the time of such termination of the excess, if any, of the amount
of rent and charges equivalent to rent reserved in this Lease for the remainder
of the stated term over the then reasonable rental value of the Leased Premises
and the

                                       19
<Page>

TENANT's rights to the Airspace for the remainder of the stated term, all of
which amounts shall be immediately due and payable from TENANT to LANDLORD.

     D.   Subject only to the perfected liens, security interest, or encumbrance
of any lender, to the fullest extent allowable by law, LANDLORD shall have a
lien on the goods, furniture and effects located on the Leased Premises,
belonging to TENANT for all rents and sums payable hereunder and all other
charges due LANDLORD hereunder, which lien shall be superior to all other liens
of any kind or character whatsoever, located on the Leased Premises or in the
Airspace. No goods, furniture and effects shall be removed from the Leased
Premises without the written consent of LANDLORD, except in the ordinary course
of business, until all rents and other applicable charges have been paid. Any
perfected lien, security interests, or encumbrance of any purchase money lender
or construction money lender, shall be senior in all respects to any lien,
security interest, or encumbrance of LANDLORD.

                                   SECTION 35
                                 LEGAL EXPENSES

     In the event of any default hereof by LANDLORD or TENANT, the parties agree
to pay, in addition to any amounts which may be due under this Lease, the
prevailing party's reasonable attorneys' fees, whether incurred prior to filing
of suit or afterwards, necessary to enforce the other party's obligations under
this Lease.

                                   SECTION 36
                                    INTEREST

     Without waiving, or in any manner affecting, any of the other rights or
remedies which LANDLORD has under this Lease or by reason of applicable law,
LANDLORD may charge, after the expiration of any specified period for
performance, interest on all past-due payments of rent and any other payments
and sums due by TENANT and collectible hereunder, at the lesser of one and
one-half percent (1 1/2%) per month, or any part thereof, or the maximum lawful
rate of interest which may be charged; provided that no such interest may be
charged if it is not lawful to do so.

                                   SECTION 37
                                  HOLDING OVER

     Any holding over after the expiration of the term hereof, without the
written consent of LANDLORD, shall be construed to be a tenancy from month to
month at the rents herein specified (prorated on a monthly basis) and shall
otherwise be on the terms and conditions herein specified, so far as applicable.
However, no holding over shall result in the waiver, loss or diminution of any
of LANDLORD's rights, either under the terms of this Lease or under applicable
law.

                                   SECTION 38
                                     ACCESS

     LANDLORD shall have the right to enter upon the Leased Premises and the
Airspace at any reasonable time upon reasonable notice to TENANT for the purpose
of determining

                                       20
<Page>

compliance with the terms, conditions and obligations of TENANT under this
Lease, or of making repairs, alterations or additions to adjacent premises.

                                   SECTION 39
                             NON-EXCLUSIVE REMEDIES

     The mention in this Lease of any specific right or remedy shall not
preclude LANDLORD from exercising any other right or from having any other
remedy or from maintaining any action to which it may be otherwise, entitled
either at law or in equity.

                                   SECTION 40
                               LANDLORD'S COVENANT

     Upon payment by TENANT of the rents provided, and upon the observance and
performance of all the covenants, terms and conditions on TENANT's part to be
observed and performed, TENANT shall peaceably and quietly hold and enjoy the
Leased Premises and the Airspace for the term hereby demised without hindrance
or interruption by LANDLORD or any other person or persons lawfully or equitably
claiming by, through or under LANDLORD, subject, nevertheless, to the terms and
conditions of this Lease.

                                   SECTION 41
                                     WAIVER

     The waiver by LANDLORD of any breach of any term, covenant, or condition
herein contained shall not be deemed to be a waiver of such term, covenant or
condition or any subsequent breach of the same or any other term, covenant or
condition herein contained. The subsequent acceptance of rent hereunder by
LANDLORD shall not be deemed to be a waiver of any preceding breach by TENANT of
any term, covenant or condition of this Lease, other than the failure of TENANT
to pay the particular rental so accepted, regardless of LANDLORD's knowledge of
such preceding breach at the time of acceptance of such rent. No covenant, term
or condition of this Lease shall be deemed to have been waived by LANDLORD,
unless such a waiver be in writing by LANDLORD.

                                   SECTION 42
                             ACCORD AND SATISFACTION

     No payment by TENANT or receipt by LANDLORD of a lesser amount than the
monthly rent herein stipulated shall be deemed to be other than on account of
the earliest stipulated rent, nor shall any endorsement or statement on any
check or any letter accompanying any check or payment as rent be deemed an
accord and satisfaction, and LANDLORD may accept such check or payment without
prejudice to LANDLORD's right to recover the balance of such rent or pursue any
other remedy in this Lease provided.

                                   SECTION 43
                                ENTIRE AGREEMENT

     This Lease, and the exhibits attached hereto and forming a part hereof, set
forth all the covenants, promises, agreements, conditions and understandings
between LANDLORD and

                                       21
<Page>

TENANT concerning the Leased Premises, the Airspace, the property under the
Airspace, and other property described herein; and there are no covenants,
promises, agreements, conditions or understandings, either oral or written,
between them other than as herein and therein set forth. Except as herein
otherwise provided, no subsequent alteration, amendment, change or addition to
this Lease shall be binding upon LANDLORD or TENANT unless reduced to writing
and signed by them.

                                   SECTION 44
                                 NO PARTNERSHIP

     LANDLORD does not, in any way or for any purpose, become a partner of
TENANT in the conduct of its business, or otherwise, or joint venturer or a
member of adjoining enterprises with TENANT. The provisions of this Lease
relating to the percentage rent payable hereunder are included solely for the
purpose of providing a method whereby the rent is to be measured and
ascertained.

                                   SECTION 45
                                     NOTICES

     All notices required or options granted under this Lease shall be given or
exercised in writing and shall be deemed to be properly served if delivered in
writing personally, or sent by certified mail with return receipt requested, to
TENANT at its office as set out in the preamble of this Lease, or at such other
address as may be specified by TENANT in written notice to LANDLORD, and to
LANDLORD at both the office of the Municipal Clerk of the CITY of Biloxi, 140
Lameuse Street, Biloxi, Mississippi 39530, or such other addresses as may be
provided by LANDLORD in written notice to TENANT.

                                   SECTION 46
                                    RECORDING

     TENANT shall not record this Lease without the written consent of LANDLORD;
however, upon the request of either party hereto, the other party shall join in
the execution of the memorandum or so-called "short form" of this Lease for the
purposes of recordation. Said memorandum or short form of this Lease shall
describe the parties, the Leased Premises and Airspace, and the term of this
Lease and shall incorporate this Lease by reference. TENANT shall record this
Lease or said short form at the request of LANDLORD and shall pay the cost of
recording same.

                                   SECTION 47
                                  LAW TO APPLY

     The laws of the State of Mississippi shall govern the interpretation,
validity, performance and enforcement of this Lease. If any provision of this
Lease should be held to be invalid or unenforceable, the validity and
enforceability of the remaining provisions of this Lease shall not be affected
thereby.

                                       22
<Page>

                                   SECTION 48
                      AUTHORITY OF SIGNATORIES AND PARTIES

     The signatories hereto and the parties they represent each represent and
warrant that to the best of their knowledge, information, and belief they are
fully and completely authorized to execute, deliver and perform this Lease as
well as any amendments, modifications, supplements, restatements, consents, and
waivers hereto or hereof.

                                   SECTION 49
                    COVENANT REGARDING NO PARENT CORPORATION

     PREMIER covenants that it is sole owner and operator of the gaming
enterprise which it intends to operate utilizing the Leased Premises and
Airspace, and that it is not owned wholly or partially by any person or
corporation other than those executing this Agreement, except (a) that there is
outstanding a certain right of conversion under the terms of funding the land
acquisition which may require transfer of a fractional ownership interest in
PREMIER Entertainment, LLC to AA Capital Partners, Inc., or an affiliate
controlled by AA Capital Partners, Inc.; and, (b) PREMIER ENTERTAINMENT, LLC, a
Mississippi Limited Liability Company, wholly owned by GAR, LLC, a Mississippi
Limited Liability Company, will merge with PREMIERE ENTERTAINMENT BILOXI LLC, a
Delaware Limited Liability Company, wholly owned by GAR, LLC, and PREMIER
ENTERTAINMENT BILOXI LLC will be the surviving company. PREMIER, and the
individuals executing this agreement, acknowledge that the CITY has relied in
good faith on this representation and has been induced to enter this agreement
by its reliance upon this representation.

LANDLORD:                 CITY OF BILOXI, MISSISSIPPI

                          BY:     /s/ A.J. Holloway
                                  ----------------------------------------------
                                  A. J. Holloway, Mayor
                                  Executed this 18th day of November, 2003.

                          ATTEST: /s/ Brenda Johnston
                                 -----------------------------------------------
                                  Brenda Johnston, Municipal Clerk
                                  Executed this 18th day of November, 2003.

TENANT                       PREMIER ENTERTAINMENT LLC,
                             A DELAWARE LIMITED LIABILITY COMPANY

                             BY:  GAR, LLC, its Managing Member

                                  By: /s/ David Ross,
                                     -------------------------------------------
                                      David Ross, Managing Member
                                      Executed this 20th day of November, 2003.

                                  By: /s/ Gregg Guiffria
                                     -------------------------------------------

                                       23
<Page>

                                      Gregg Guiffria, Managing Member
                                      Executed this 21st day of November, 2003.

                                  By: /s/ Roy Anderson, III
                                     -------------------------------------------
                                      Roy Anderson, III, Managing Member
                                      Executed this 18th day of November, 2003.

PROSPECTIVE TENANT BY        PREMIER ENTERTAINMENT BILOXI LLC,
MERGER:                      A DELAWARE LIMITED LIABILITY COMPANY

                             BY:  GAR, LLC, its Managing Member

                                  By: /s/ David Ross
                                     -------------------------------------------
                                      David Ross, Managing Member
                                      Executed this 20th day of November, 2003.

                                  By: /s/ Gregg Guiffria
                                     -------------------------------------------
                                      Gregg Guiffria, Managing Member
                                      Executed this 21st day of November, 2003.

                                  By: /s/ Roy Anderson, III
                                     -------------------------------------------
                                      Roy Anderson, III, Managing Member
                                      Executed this 18th day of November, 2003.

                                       24
<Page>

STATE OF MISSISSIPPI
COUNTY OF HARRISON

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named A. J. HOLLOWAY and BRENDA JOHNSTON,
who acknowledged that they are the Mayor and Municipal Clerk, respectively, of
the CITY OF BILOXI, MISSISSIPPI, and that in said representative capacity, they
executed the above and foregoing instrument, after having first been duly
authorized to so do, this the 18th day of November , 2003.

                                         /s/ Michelle A. Wesien
                                         ----------------------------
                                         NOTARY PUBLIC
MY COMMISSION EXPIRES: Nov. 26, 2006
                       ------------------

STATE OF FLORIDA
COUNTY OF PALM BEACH

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named DAVID ROSS, who acknowledged that he
is a Managing Member of GAR, LLC, a Mississippi Limited Liability Company; which
is the Managing Member of Premier Entertainment, LLC, a Mississippi Limited
Liability Company, and that for and on behalf of the said companies, and as
their act and deed, he executed the above and foregoing instrument after having
first been duly authorized by said companies to so do, this the 20th day of
November, 2003.

                                         /s/ Constance H. Ucci
                                         ----------------------------
                                         NOTARY PUBLIC

MY COMMISSION EXPIRES: Mar. 26, 2005
                       ------------------

STATE OF NEVADA
COUNTY OF CLARK

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named GREGG GUIFFRIA, who acknowledged
that he is a Managing Member of GAR, LLC, a Mississippi Limited Liability
Company; which is the Managing Member of Premier Entertainment, LLC, a
Mississippi Limited Liability Company, and that for and on behalf of the said
companies, and as their act and deed, he executed the above and foregoing
instrument after having first been duly authorized by said companies to so do,
this the 21st day of November, 2003.

                                         /s/ James R. Runge
                                         ----------------------------
                                         NOTARY PUBLIC
MY COMMISSION EXPIRES: 5/1/07
                       ---------

                                       25
<Page>

STATE OF MISSISSIPPI
COUNTY OF HARRISON

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named ROY ANDERSON, III, who acknowledged
that he is a Managing Member of GAR, LLC, a Mississippi Limited Liability
Company; which is the Managing Member of Premier Entertainment, LLC, a
Mississippi Limited Liability Company, and that for and on behalf of the said
companies, and as their act and deed, he executed the above and foregoing
instrument after having first been duly authorized by said companies to so do,
this the 18th day of October, 2003.

                                         /s/ Anita A. Ladner
                                         ----------------------------
                                         NOTARY PUBLIC

MY COMMISSION EXPIRES: Jan. 10, 2006
                       ------------------

STATE OF FLORIDA
COUNTY OF PALM BEACH

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named DAVID ROSS, who acknowledged that he
is a Managing Member of GAR, LLC, a Mississippi Limited Liability Company; which
is the Managing Member of Premier Entertainment, LLC, a Mississippi Limited
Liability Company, and that for and on behalf of the said companies, and as
their act and deed, he executed the above and foregoing instrument after having
first been duly authorized by said companies to so do, this the 20th day of
November, 2003.

                                         /s/ Constance H. Ucci
                                         ----------------------------
                                         NOTARY PUBLIC

MY COMMISSION EXPIRES: Mar. 26, 2005
                       ------------------

STATE OF NEVADA
COUNTY OF CLARK

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named GREGG GUIFFRIA, who acknowledged
that he is a Managing Member of GAR, LLC, a Mississippi Limited Liability
Company; which is the Managing Member of Premier Entertainment, LLC, a
Mississippi Limited Liability Company, and that for and on behalf of the said
companies, and as their act and deed, he executed the above and foregoing
instrument after having first been duly authorized by said companies to so do,
this the ___ day of November, 2003.

                                         /s/ James R. Runge
                                         ----------------------------

                                       26
<Page>

                                         NOTARY PUBLIC

MY COMMISSION EXPIRES: 5/1/07
                       -------------

STATE OF MISSISSIPPI
COUNTY OF HARRISON

     PERSONALLY came and appeared before me, the undersigned authority, in and
for said County and State, the within named ROY ANDERSON, III, who acknowledged
that he is a Managing Member of GAR, LLC, a Mississippi Limited Liability
Company; which is the Managing Member of Premier Entertainment, LLC, a
Mississippi Limited Liability Company, and that for and on behalf of the said
companies, and as their act and deed, he executed the above and foregoing
instrument after having first been duly authorized by said companies to so do,
this the 18th day of November, 2003.

                                         /s/ Anita A. Ladner
                                         ----------------------------
                                         NOTARY PUBLIC

MY COMMISSION EXPIRES:  Jan 10, 2006
                       ------------------

                                       27
<Page>

                                LIST OF EXHIBITS

     To: Lease and Air Rights Agreement as Amended by Technical Amendment
         Addendum

     Exhibit "A"  Legal Description of Lameuse Street Parking Area.
                  (Parcel 2 on Exhibit "H" Plat)

     Exhibit "B"  Legal Description of Lameuse Street Parcel.
                  (Parcel 1 on Exhibit "H" Plat)

     Exhibit "C"  Legal Description of Service Road Parcel.

          Part 1: Legal Description of South portion of Service Road Parcel.
                  (Parcel 3 on Exhibit "H" Plat)

          Part 2: Legal Description of North portion of Service Road Parcel.
                  (Parcel 4 on Exhibit "H" Plat)

     Exhibit "D"  Legal Description of North portion of Service Road Parcel,
                  conveyed to City by Premier.
                  (Parcel 4 on Exhibit "H" Plat)

     Exhibit "E"  Legal Description of parcel conveyed by Premier to City for
                  Main Street widening. (Parcel 8 on Exhibit "H" Plat)

     Exhibit "F"  Legal Description of Traffic Signal Parcel conveyed to City
                  by Premier. (Parcel 7 on Exhibit "H" Plat)

     Exhibit "G"  This is no Exhibit "G"

     Exhibit "H"  Plat showing Parcels 1 through 8 referred to in Lease and Air
                  Rights Agreement and Technical Amendment Addendum.

     Exhibit "I"  Lender Protection Provisions from Tidelands Lease between
                  Secretary of State and Premier, which are incorporated by
                  reference into Lease and Air Rights Agreement via the
                  Technical Amendment Addendum.

     Exhibit "J"  Legal Description of Lameuse Street extended South of the
                  Leased Premises upon which the City grants and easement to
                  Premier.
                  (Parcel 6 on Exhibit "H" Plat)

                                       28
<Page>

                                    PARCEL 2
                           LAMUESE STREET PARKING AREA
                                LEASE TO PREMIER

BEGIN at the northwest corner of Mariner's Harbor Condominiums, Biloxi, Harrison
County 2nd Judicial District, Mississippi as per the map or plat thereof on file
in the office of the Chancery Clerk at the Court House in Biloxi, Harrison
County 2nd Judicial District, Mississippi and run South 00 degrees 31 minutes 32
seconds East along the west line of said Mariner's Harbor Condominiums for
176.25 feet; thence run West for 21.29 feet to the east right of way line of
Lamuese Street; thence run North 00 degrees 22 minutes 56 seconds West along
said east right of way line for 178.49 to the south right of way line of Beach
Boulevard (U.S. Highway 90); thence run Easterly along said south right of way
line and along a non-tangential curve, to the left (having a radius of 2323.00
feet, an internal angle of 00 degrees 31 minutes 03 seconds and being subtended
by a chord distance of 20.98 feet along a bearing of South 83 degrees 50 minutes
55 seconds East) for 20.98 feet back to the POINT OF BEGINNING.

Said parcel of land is part of Biloxi Section Block 100, Biloxi, Harrison County
Second Judicial District, Mississippi and contains 3736.24 square feet or 0.086
acres.

                                       29
<Page>

                                    PARCEL 1
                             EXISTING LAMUESE STREET

BEGIN at an iron rod at the northeast corner of Harbor View Condominiums as per
the map or plat thereof on file in Plat Book 9 at Page 9 on file in the office
of the Chancery Clerk at the Court House in Biloxi, Harrison County Second
Judicial District, Mississippi and run South 00 degrees 31 minutes 32 seconds
East along the east line of said Harbor View Condominiums for 239.05 feet;
thence run North 89 degrees 28 minutes 33 seconds East for 3.66 feet; thence run
South 89 degrees 51 minutes 31 seconds East for 35.92 feet; thence run North 00
degrees 22 minutes 56 seconds West for 234.78 feet to a point on the south right
or way line of Beach Boulevard (U.S. Highway 90); thence run North 83 degrees 51
minutes 05 seconds West along said south right of way for 40.44 feet back to the
POINT OF BEGINNING.

Said parcel of land is part of Biloxi Section Blocks 100 and 130, Biloxi,
Harrison County Second Judicial District;, Mississippi and contains 9445.05
square feet or 0.217 acres.

                                       30
<Page>

                                    PARCEL 3
                                    EXISTING
                            EAST - WEST SERVICE ROAD

COMMENCE at the northwest corner of Mariner's Harbor Condominiums, Biloxi,
Harrison County 2nd Judicial District, Mississippi as per the map or plat
thereof on file in the office of the Chancery Clerk at the Court House in
Biloxi, Harrison County 2nd Judicial District, Mississippi and run South 00
degrees 31 minutes 32 seconds East along the west line of said Mariner's Harbor
Condominiums for 176.25 feet to and for the POINT OF BEGINNING.

From said POINT OF BEGINNING run West for 21.29 feet; thence run South 00
degrees 22 minutes 56 seconds East for 56.28 feet; thence run South 89 degrees
56 minutes 41 seconds East for 420.11 feet; thence run South 49 degrees 00
minutes 58 seconds East for 15.62 feet; thence run North 88 degrees 36 minutes
21 seconds East for 14.73 feet; thence run North 00 degrees 33 minutes 17
seconds West for 55.93 feet; thence run South 89 degrees 46 minutes 41 seconds
West for 68.44 feet; thence run South 00 degrees 36 minutes 03 seconds East for
20.05 feet; thence run North 89 degrees 45 minutes 09 seconds West for 108.51
feet; thence run North 00 degrees 50 minutes 05 seconds West for 20.00 feet;
thence run South 89 degrees 37 minutes 04 seconds West for 140.06 feet; thence
run South 00 degrees 22 minutes 56 seconds East for 18.33 feet; thence run South
88 degrees 59 minutes 05 seconds West for 107.95 feet; thence run North 00
degrees 31 minutes 32 seconds West for 31.66 feet back to the POINT OF
BEGINNING.

Said parcel of land is part of Biloxi Section Block l00, Biloxi, Harrison County
Second Judicial District, Mississippi and contains 16507.34 square feet or 0.379
acres.

                                       31
<Page>

                                    PARCEL 4
                                 PREMIER TO CITY
                            EAST - WEST SERVICE ROAD

COMMENCE at the northwest corner of Mariner's Harbor Condominiums, Biloxi,
Harrison County 2nd Judicial District, Mississippi as per the map or plat
thereof on file in the office of the Chancery Clerk at the Court House in
Biloxi, Harrison County 2nd Judicial District, Mississippi and run South 00
degrees 31 minutes 32 seconds East along the west line of said Mariner's Harbor
Condominiums for 176.25 feet to and for the POINT OF BEGINNING.

From said POINT OF BEGINNING run East for 394.64 feet; thence run South 00
degrees 42 minutes 33 seconds East for 10.75 feet; thence run South 89 degrees
46 minutes 41 seconds West for 38.03 feet; thence run South 00 degrees 36
minutes 03 seconds East for 20.05 feet; thence run North 89 degrees 45 minutes
09 seconds West for 108.51 feet; thence run North 00 degrees 50 minutes 05
seconds West for 20.00 feet; thence run South 89 degrees 37 minutes 04 seconds
West for 140.06 feet; thence run South 00 degrees 22 minutes 56 seconds East for
18.33 feet; thence run South 88 degrees 59 minutes 05 seconds West for 107.95
feet; thence run North 00 degrees 31 minutes 32 seconds West for 31.66 feet back
to the POINT OF BEGINNING.

Said parcel of land is part of Biloxi section Block 100, Biloxi, Harrison County
Second Judicial District, Mississippi and contains 8594.88 square feet or 0.197
acres.

                                       32
<Page>

                                    PARCEL 4
                                 PREMIER TO CITY
                            EAST - WEST SERVICE ROAD

COMMENCE at the northwest corner of Mariner's Harbor Condominiums, Biloxi,
Harrison County 2nd Judicial District, Mississippi as per the map or plat
thereof on file in the office of the Chancery Clerk at the Court House in
Biloxi, Harrison County 2nd Judicial District, Mississippi and run South 00
degrees 31 minutes 32 seconds East along the west line of said Mariner's Harbor
Condominiums for 176.25 feet to and for the POINT OF BEGINNING.

From said POINT OF BEGINNING run East for 394.64 feet; thence run South 00
degrees 42 minutes 33 seconds East for 10.75 feet; thence run South 89 degrees
46 minutes 41 seconds West for 38.03 feet; thence run South 00 degrees 36
minutes 03 seconds East for 20.05 feet; thence run North 89 degrees 45 minutes
09 seconds West for 108.51 feet; thence run North 00 degrees 50 minutes 05
seconds West for 20.00 feet; thence run South 89 degrees 37 minutes 04 seconds
West for 140.06 feet; thence run south 00 degrees 22 minutes 56 seconds East for
18.33 feet; thence run South 88 degrees 59 minutes 05 seconds West for 107.95
feet; thence run North 00 degrees 31 minutes 32 seconds West for 31.66 feet back
to the POINT OF BEGINNING.

Said parcel of land is part of Biloxi Section Block 100, Biloxi, Harrison County
Second Judicial District, Mississippi and contains 8594.88 square feet or 0.197
acres.

                                       33
<Page>

                                    PARCEL 8
                              MAIN STREET WIDENING

COMMENCE at the northwest corner of Mariner's Harbor Condominiums, Biloxi,
Harrison County 2nd Judicial District, Mississippi as per the map or plat
thereof on file in the office of the Chancery Clerk at the Court House in
Biloxi, Harrison County 2nd Judicial District, Mississippi and run South 00
degrees 31 minutes 32 seconds East along the west line of said Mariner's Harbor
Condominiums for 176.25 feet; thence run East for 394.64 feet to and for the
POINT OF BEGINNING.

From said POINT OF BEGINNING run North 00 degrees 42 minutes 33 seconds West for
170.02 feet to a point on the south right of way line of Beach Boulevard (U.S.
Highway 90); thence run Easterly along said south right of way line and along a
non-tangential curve to the left (having a radius of 2323.00 feet, an internal
angle of 00 degrees 05 minutes 14 seconds and being subtended by a chord
distance of 3.54 feet along a bearing of North 85 degrees 59 minutes 45 seconds
East) for 3.54 feet; thence run North 85 degrees 57 minutes 08 seconds East
along said south right of way line for 5.51 feet; thence run South 00 degrees 34
minutes 42 seconds East for 25.83 feet; thence run North 89 degrees 25 minutes
18 seconds East for 16.00 feet; thence run South 00 degrees 34 minutes 42
seconds East for 74.00 feet; thence run North 87 degrees 17 minutes 02 seconds
West for 15.60 feet; thence run South 00 degrees 31 minutes 45 seconds East for
82.44 feet; thence run South 89 degrees 46 minutes 41 seconds West for 8.98
feet; thence run North 00 degrees 42 minutes 33 seconds West for 10.75 feet back
to the POINT OF BEGINNING.

Said parcel of land is part of Biloxi Section Block 100, Biloxi, Harrison County
Second Judicial District, Mississippi and contains 2807.04 square feet or 0.064
acres.

                                       34
<Page>

                                    .PARCEL 7
                             TRAFFIC SIGNAL EASEMENT

COMMENCE at the northwest corner of Mariner's Harbor Condominiums, Biloxi,
Harrison County 2nd Judicial District, Mississippi as per the map or plat
thereof on file in the office of the Chancery Clerk at the Court House in
Biloxi, Harrison County 2nd Judicial District, Mississippi and run South 00
degrees 31 minutes 32 seconds East along the west line of said Mariner's Harbor
Condominiums for 176.25 feet; thence run East for 394.64 feet; thence run North
00 degrees 42 minutes 33 seconds West for 143.27 feet to and for the POINT or
BEGINNING.

From said POINT OF BEGINNING run South 89 degrees 25 minutes 18 seconds West for
16.00 feet; thence run North 00 degrees 34 minutes 42 seconds West for 25.84
feet to a point on the south right of way line of Beach Boulevard (U.S. Highway
90); thence run Easterly along said south right of way line and along a non
-tangential curve to the left (having a radius of 2323.00 feet, an internal
angle of 00 degrees 23 minutes 38 seconds and being subtended by a chord
distance of 15.96 feet along a bearing of North 86 degrees 08 minutes 56 seconds
East) for 15.97 feet; thence run South 00 degrees 42 minutes 33 seconds East for
26.75 feet back to the POINT OF BEGINNING.

Said parcel of land is part of Biloxi Section Block 100, Biloxi, Harrison County
Second Judicial District, Mississippi and contains 419.89 square feet or 0.010
acres.

                                       35
<Page>

31.  LEASEHOLD MORTGAGEE(S) PROTECTIONS.

     This Section 31 is included to give additional rights to any Leasehold
Mortgagee(s), as defined herein. Unless specifically so stated, the additional
rights herein shall not amend the remaining provisions of the Lease with regard
to the Lessee, and may not be exercised, claimed or used in any manner by the
Lessee. For purposes of this Lease, "Leasehold Mortgage(s)" means any and all
deeds of trust, mortgages or security interests, including without limitation
any and all assignments, renewals, extensions or modifications thereof affecting
the Lease Premises and/or the Lessee's leasehold interest under this Lease,
which shall include facilities constructed on or placed on the Lease Premises
including any vessels, and "Leasehold Mortgagee(s)" shall mean the beneficiary
or beneficiaries under any Leasehold Mortgage(s). Any Leasehold Mortgagee(s) may
exercise any of its rights hereunder through a designee, nominee, or wholly
owned subsidiary.

          (a)  Lessor does hereby consent to one Leasehold Mortgage, however,
Lessor covenants that its consent to subsequent mortgages shall not be
unreasonably withheld. Any Leasehold Mortgage(s) shall be a lien on the Lease
Premises to the extent of the interest of the Lessee [The Leasehold Mortgage(s)
will not be an encumbrance on the fee interest in the public trust tidelands
real property leased from the State of Mississippi, or the reversionary fee
interest of the CITY in the Leased Premises, but is limited strictly to a
leasehold interest only]. Furthermore, it is understood and agreed that in the
event a Leasehold Mortgage(s) holder should foreclose, it shall have the right
to make a one time assignment of the Lease Premises to any financially
responsible person licensed by the Mississippi Gaming Commission.

          (b)  If a Leasehold Mortgagee(s) shall forward to Lessor a copy of the
Leasehold Mortgage(s) together with a written notice setting forth its name and
address, then any such copy of said mortgage and any such notice shall be deemed
also to have been forwarded to any successor to Lessor's interest in the Lease
Premises and until the time, if any, that said mortgage shall be .satisfied of
record or said Leasehold Mortgagee(s) shall give Lessor written notice that said
mortgage has been satisfied, and further, Lessor agrees and acknowledges as
follows for the benefit of any Leasehold Mortgagee(s) (all of which agreements
and covenants shall be cumulative, so that if a Leasehold Mortgagee(s) exercises
rights or remedies under any one of the following Sections the same shall not be
deemed an election of remedies and any Leasehold Mortgagee(s) shall continue to
have all other rights and remedies provided for below):

               (1)  Lessor shall not accept any voluntary cancellation,
          surrender, termination or abandonment of this Lease by Lessee and no
          modification or amendment of this Lease shall be binding upon a
          Leasehold Mortgagee(s) or affect the lien of a Leasehold Mortgage(s)
          if done without the written consent of any such Leasehold
          Mortgagee(s).

               (2)  If Lessor shall give any notice, demand or election,
          including any notice of default or termination (hereinafter in this
          paragraph collectively referred to as "Notices"), to Lessee hereunder,
          Lessor shall give such Notice to the Leasehold Mortgagee(s) (or to its
          successor(s) by assignment), provided Lessor has been given written
          notice of the existence of the Leasehold Mortgagee or its successor by
          assignment and written directions for providing notice to said

                                       36
<Page>

          Leasehold Mortgagee or successor assignee. No Notice given by Lessor
          to Lessee shall be binding upon or affect any Leasehold Mortgagee(s)
          unless a copy of said Notice shall be delivered as provided herein to
          said Leasehold Mortgagee(s).

               (3)  Notwithstanding anything to the contrary herein, any
          Leasehold Mortgagee(s) (and/or their representatives or assignees)
          shall have the right to perform any term, covenant, condition or
          agreement of this Lease to be performed by Lessee (excluding any
          covenant condition or term in which the performance thereof would
          require a gaming license) and to remedy any Default by Lessee
          hereunder, and Lessor shall accept such performance by such Leasehold
          Mortgagee(s) with the same force and effect as if furnished by Lessee.
          [However, should a Leasehold Mortgagee(s) exercise its rights under
          this provision, it will indemnify and hold Lessor harmless from and
          against any and all loss, costs, liability and expense (including
          reasonable attorneys' fees) resulting from such action to the extent
          and so long as Lessor's actions are pursuant to and in compliance with
          instructions from the Leasehold Mortgagee(s).]

               (4)  Provided lessor has been given written notice of the
          existence of the Leasehold Mortgagee or its successor by assignment
          and written direction for providing notice to said Leasehold Mortgagee
          or successor assignee. If Lessor shall give a notice of a Default by
          Lessee under this Lease and if such Default shall not be remedied
          within any applicable grace period and Lessor shall become entitled to
          re-enter Lease Premises or terminate this Lease, then, before
          re-entering Lease Premises or terminating this Lease, Lessor shall
          give the Leasehold Mortgagee(s) not less than sixty (60) days
          additional written notice of the Default and shall allow such
          Leasehold Mortgagee(s) such additional sixty (60) days within which to
          cure the Default, or, in the case of a Default (other than a Default
          in the payment of any rent or other sum of money under this Lease)
          which cannot in the exercise of diligence be cured within said sixty
          (60) day period, shall allow the Leasehold Mortgagee(s) such
          additional sixty (60) days to commence the curing of the Default, in
          which event Lessor shall not re-enter Lease Premises or terminate this
          Lease, so long as the Leasehold Mortgagee(s), or Lessee, is diligently
          and in good faith engaged in curing Default, so long as all payments
          under this Lease remain current as described in this Lease during the
          additional time to cure.

               (5)  Lessee may delegate irrevocably to the Leasehold
          Mortgagee(s) the authority to exercise any or all of Lessee's rights
          hereunder (including without limitation the authority to exercise any
          option to extend or renew the term hereof), [but no such delegation
          shall be binding upon Lessor unless and until either Lessee or the
          Leasehold Mortgagee(s) shall give to Lessor a true copy by United
          States Mail, postage prepaid, certified mail, of a written instrument
          effecting such delegation and indemnifying Lessor for any dispute
          between Lessor and Leasehold Mortgagee(s) relating to such delegation
          or any conflicting claims as between Lessee and Leasehold Mortgagee(s)
          so long as Lessor's actions are in compliance with and pursuant to
          instructions from the Leasehold Mortgagee(s).]

                                       37
<Page>

          For the purpose of exercising such rights, Leasehold Mortgagee(s)
          shall, for the purposes of this Lease, be deemed to be the Lessee.
          However, Lessee shall remain entitled to receive the notices provided
          for under this Lease.

          (c)  Provided lessor has been given written notice of the existence of
the Leasehold Mortgagee or its successor by assignment and written direction for
providing notice to said Leasehold Mortgagee or successor assignee, if Lessor
terminates this Lease, then Lessor will notify the Leasehold Mortgagee(s) of
such termination ("Termination Notice"), which notice shall set forth all sums
due to Lessor under this Lease, and upon the written request of the Leasehold
Mortgagee(s), and provided all monetary events of default are cured and all
non-monetary events of default are in the process of being cured, or will begin
to be cured upon execution of a new lease, Lessor will enter into a new lease of
Lease Premises with the Leasehold Mortgagee(s) for the remainder of this Lease
term, effective as of the date of such termination, at the rent and additional
rent and upon the terms, provisions, covenants and agreements herein contained
(including, without limitation, all rights, options, or privileges to extend or
renew the term hereof) [provided:

               (1)  the Leasehold Mortgagee(s) shall each request Lessor for
          such a new lease within sixty (60) days after the date of the
          Termination Notice and such written request by United States Mail,
          postage prepaid, certified mail, is accompanied by payment to Lessor
          of all sums then due to Lessor under this Lease as described in the
          Termination Notice;

               (2)  the Leasehold Mortgagee(s) shall pay to Lessor, at the time
          of the execution and delivery of said new lease, any and all
          reasonable expenses, including legal and attorneys' fees, to which the
          Lessor shall have been subjected by reason of such termination; and

               (3)  the Leasehold Mortgagee(s) shall, on or before execution and
          delivery of said new lease, perform and observe all the other
          covenants and conditions on Lessee's part to be performed and observed
          to the extent that Lessee shall have failed to perform and observe the
          same, except that (a) with respect to any Default which cannot be
          cured by the Leasehold Mortgagee(s) until it obtains possession of the
          Lease Premises, the Leasehold Mortgagee(s) shall have a reasonable
          time after the Leasehold Mortgagee(s) obtains possession, to cure such
          Default, provided the Leasehold Mortgagee(s) shall first agree in
          writing to proceed diligently to remedy said Default after it obtains
          possession of the Lease Premises and shall in fact proceed diligently
          and in good faith to do so and shall in fact so do, and (b) in no
          event shall a Leasehold Mortgagee(s) be required to cure a Default
          related to bankruptcy, insolvency, a prohibited transfer, failure to
          deliver financial information relating to Lessee (to the extent, if
          any, that any of the foregoing actually constitute(s) a non-monetary
          Default under this Lease), and any other non-monetary Default that by
          its nature relates only to Lessee or its affiliates or can reasonably
          be performed only by Lessee or its affiliates. Upon execution and
          delivery of such new lease, any subleases which may have theretofore
          been assigned, and transferred to Lessor shall thereupon be assigned
          and transferred by Lessor to the new lessee.] During the period from
          the

                                       38
<Page>

          date of the termination of this Lease until the earlier of one hundred
          eighty (180) days, or until the date the term of the new lease
          commences, Lessor shall not terminate any sublease or seek to recover
          possession of any sublet space without permission of the Leasehold
          Mortgagee(s), except that Lessor may elect to do so by reason of a
          Default (beyond any applicable notice or grace periods) by any
          subtenant under the terms, covenants or conditions on such subtenant's
          part to be performed or complied with pursuant to such sublease.

          (d)  Any new lease entered into pursuant to this Lease shall be in
recordable form. Notice is hereby given to any intervening claimants that to the
extent provided by law, such new lease shall be superior to all rights, liens
and interests intervening between the date of this Lease and the date of such
new lease period. To the extent provided by law, such new lease shall be free of
all rights of the originally named Lessee hereunder. The provisions of the
immediately preceding sentence shall be self-executing. Lessor, however, does
not in any way assure, guarantee or warrant that said new lease shall be
superior under applicable law and therein granted a priority status.

          (e)  Upon written request of Lessee or of a Leasehold Mortgagee(s),
Lessor will acknowledge to them or any of them in writing the receipt by Lessor
of any notice or instrument received by the Lessor pursuant to the provisions of
this Lease.

          (f)  The parties intend that, when a new lease is entered into with
the Leasehold Mortgagee(s) or its designee (such holder or designee being herein
called the "Acquiring Holder" and the leasehold mortgage of such Acquiring
Holder being herein called the "Acquiring Holder's Leasehold Mortgage(s)"), the
liens on and estates and other interests in Lease Premises or this Lease of all
persons holding directly or indirectly under or through Lessee (including the
Acquiring Holder's Leasehold Mortgage(s)); other than liens, estates and
interests which are subordinate to the Acquiring Holders Leasehold Mortgage(s),
shall, to the extent provided by law, immediately and without documentation
continue in effect, attach to the new lease and be reinstated as to each other
to the same extent, and in the same manner, order and priority, as if: (1) the
new lease were this Lease; (2) this Lease had not been terminated; and (3) the
Acquiring Holder had acquired the leasehold interest under this Lease by
assignment on the date the term of the new lease commences. For the purposes of
the preceding sentences, each lien, estate or interest which could have been
extinguished by the foreclosure of the Acquiring Holder's Leasehold Mortgage(s)
shall be deemed to be subordinate to the Acquiring Holder's Leasehold
Mortgage(s).

          (g)  Notwithstanding anything in this Lease to the contrary, the
Leasehold Mortgagee(s) shall be entitled to participate in any proceedings
relating to any condemnation of all or part of this Lease or the leasehold
interest created by this Lease. In both a partial and total taking, any award
paid with respect to this Lease or the leasehold interest created by this Lease
shall first be applied to payoff in full, the indebtedness secured by the
Leasehold Mortgage(s), from most senior lien to least senior lien in order of
priority. Notwithstanding the foregoing, in the event of a partial condemnation,
and with the consent of the Leasehold Mortgagee(s), any condemnation proceeds
may be applied instead to restore the portion of the Lease Premises not
condemned pursuant to disbursement procedures deemed appropriate by the
Leasehold Mortgagee(s).

                                       39
<Page>

          (h)  Notwithstanding anything in this Lease to the contrary, all
proceeds of fire and other hazard insurance policies shall be delivered to the
Leasehold Mortgagee(s), if any. Such insurance proceeds shall be applied flat to
pay off in full, in order of priority, the indebtedness secured by the Leasehold
Mortgage(s), or as otherwise provided in the senior Leasehold Mortgage(s). The
Leasehold Mortgagee(s) are hereby empowered to participate in any settlement,
arbitration or proceeding involving such a casualty.

          (i)  The Leasehold Mortgagee(s) shall have the right, by giving notice
in writing to Lessor, to irrevocably and exclusively delegate any rights and
remedies granted by this Lease to the Leasehold Mortgage(s) to any collateral
assignee of the Leasehold Mortgagee(s) Leasehold Mortgage(s). Such collateral
assignee shall be entitled to all the same rights, benefits, privileges,
protections and notices as would apply to the Leasehold Mortgagee(s). In the
event of any conflicting claims between the Leasehold Mortgagee(s) and a
collateral assignee of such Leasehold Mortgagee(s)' Leasehold Mortgage(s),
Lessor shall honor the claims of the collateral assignee (to the exclusion of
the claims of the Leasehold Mortgagee(s)), provided that such collateral
assignee agrees to indemnify Lessor and hold Lessor harmless from and against
any and all loss, cost, liability and expense (including reasonable attorneys'
fees) arising from any litigation or other dispute between such collateral
assignee and the Leasehold Mortgagee(s) from which its rights derive.

          (j)  Within thirty (30) days after written request therefor from the
Leasehold Mortgagee(s), Lessor shall deliver to the Leasehold Mortgagee(s) a
certificate signed by Lessor in form reasonably designated by the Leasehold
Mortgagee(s), certifying as to: (1) the rent payable under this Lease; (2) the
term of this Lease and the status of Lessee's extension rights, if any, (3) the
nature of any known Defaults by Lessee alleged by Lessor; and (4) any other
matters reasonably requested by the Leasehold Mortgagee(s),

          (k)  Should Leasehold Mortgagee(s) for any reason take possession of
the Lease Premises, it shall be subject to and comply fully with all of the
provisions and conditions of this Lease which would bind the Lessee, but only
for so long as the Leasehold Mortgagee(s) has not assigned its interest under
this Lease or abandoned the Lease Premises.

          (l)  The Lessor agrees that the rights hereunder of Leasehold
Mortgagee(s) shall be exercisable by such Leasehold Mortgagee(s) in the order of
the priority of lien or other security interest of their respective Leasehold
Mortgage(s) as provided by law, but it shall not be the duty or obligation of
the Lessor to assure compliance with this provision.

          (m)  Lessor consents to any exercise of remedies by any Leasehold
Mortgagee(s) including acceptance of an assignment, deed or other conveyance in
lieu of foreclosure.

          (n)  Any notice which Lessor is required to give to any Leasehold
Mortgagee(s) hereunder shall be deemed to have been given when the United States
Postal Service certifies that such notice was delivered to the Leasehold
Mortgagee(s) at the address specified in this Lease or at such other address as
may be specified from time to time by the Leasehold Mortgagee(s).

                                       40
<Page>

          (o)  [In the event any party disputes the application of the proceeds
or any dispute develops between the parties over any portion of this Lease,
Lessor is hereby authorized to interplead the proceeds into the registry of the
Chancery Court of the Second Judicial District of Harrison County, Mississippi,
and to seek a judicial determination of the rights of the parties. Lessor shall
not be liable to either party in connection with the performance of its duties
hereunder, and the parties do hereby waive any claims they may have against the
Lessor for performance of its duties in good faith, except in the event of gross
negligence or willful misconduct.]

                                       41
<Page>

                                    PARCEL L6
                            LAMUESE STREET EXTENSION

COMMENCE at the northwest corner of Mariner's Harbor Condominiums, Biloxi,
Harrison County 2nd Judicial District, Mississippi as per the map or plat
thereof on file in the office of the Chancery Clerk at the Court House in
Biloxi, Harrison County 2nd Judicial District, Mississippi and run South 00
degrees 31 minutes 32 seconds East along the west line of said Mariner's Harbor
Condominiums for 176.25 feet; thence run West for 21.29 feet; thence run South
00 degrees 22 minutes 56 seconds East for 56.28 feet to and for the POINT OF
BEGINNING.

From said POINT OF BEGINNING run South 89 degrees 56 minutes 41 seconds East for
16.57 feet; thence run South 00 degrees 28 minutes 40 seconds East for 165.94
feet; thence run South 43 degrees 48 minutes 30 seconds East for 45.54 feet;
thence run South 00 degrees 22 minutes 16 seconds East for 80.74 feet; thence
run North 89 degrees 52 minutes 45 seconds West for 70.46 feet; thence run South
00 degrees 42 minutes 50 seconds East for 111.52 feet; thence run South 89
degrees 07 minutes 28 seconds West for 12.17 feet; thence run North 00 degrees
29 minutes 01 second West for 250.29 feet; thence run North 01 degree 44 minutes
55 seconds West for 16.59 feet; thence run North 83 degrees 11 minutes 02
seconds West for 1.20 feet; thence run North 00 degrees 23 minutes 59 seconds
West for 124.18 feet; thence run South 89 degrees 51 minutes 31 seconds East for
35.92 feet back to the POINT OF BEGINNING.

Said parcel of land is part of Biloxi Section Blocks 100 and 130, Biloxi,
Harrison County Second Judicial District, Mississippi and contains 18,828.39
square feet or 0.432 acres.

                                       42
<Page>

LANDLORD'S ADDRESS:                              TENANT'S ADDRESS:
140 Lameuse Street                               Attn: Joseph Billhimer, Jr.
Biloxi, MS 39533                                 11400 Reichold Road
228-435-6254                                     Gulfport, MS 39503
                                                 228-594-4021

INDEXING INSTRUCTIONS:   Biloxi Section Blocks 100 and 130, 2nd J.D., Harrison
                         County, MS

INSTRUMENT PREPARED BY:  City of Biloxi, 140 Lameuse Street, Biloxi, MS 39530
                         228-435-6254

                                       43

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00068-of-00352.parquet"}]]