Document:

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                                                                    Exhibit 10.4

                 AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC
                          2000 Las Vegas Boulevard South
                             Las Vegas, Nevada 89104

May __, 2004, as of April 1, 2004
Mr. Richard P. Brown
Stratosphere Corporation
2000 Las Vegas Boulevard South
Las Vegas, Nevada 89104

Dear Mr. Brown:

Effective March 31, 2004, your employment agreement, entered into in December
2002, with Stratosphere Corporation expired. You and American Casino &
Entertainment Properties LLC (the "Company"), the parent of, among others,
Stratosphere Corporation, have agreed upon the terms of your employment
agreement for the period commencing April 1, 2004. This letter (the "Agreement")
sets forth the terms upon which you shall be employed by the Company.

You ("Employee") and the Company agree as follows:

1.    Employment

Upon the terms and conditions hereinafter set forth, the Company hereby agrees
to employ Employee and Employee hereby agrees to become employed by the Company.
During the Term of Employment (as hereinafter defined), Employee shall be
employed in the position of President and Chief Executive Officer of the Company
and each of its operating subsidiaries, and such other executive positions with
the Company and/or any of its subsidiaries as are decided upon from time to time
by the Board of Directors of the Company ("Board"). Employee shall serve in all
such capacities at the pleasure of the Board. Employee shall report to and be
under the supervision of the Board. During the Term of Employment, Employee
shall devote his professional attention to the business and affairs of the
Company and its subsidiaries, shall use his best efforts to advance the best
interests of the Company and shall comply with the reasonable policies of the
Company, including, without limitation, such policies with respect to conflict
of interest, confidentiality and business ethics from time to time in effect.
Employee understands that the Company may make Employee's time, skill and
services available to affiliated entities of the Company, including GB Holdings,
Inc. and its subsidiaries and should it do so, the Company would be entitled to
be reimbursed therefore by the affiliated entity.

Except as specifically provided herein, during the Term of Employment, the
Employee shall not, without the prior written consent of the Company, render
services, whether or not compensated, to any other person or entity as an
employee, independent contractor or otherwise, provided, however, that nothing
contained herein shall restrict the Employee from rendering services in
charitable organizations, or being involved in the business of racing/breeding
of thoroughbred horses (provided that Employee devotes his full professional
attention to the business and affairs of the Company, its subsidiaries and of
any affiliated entities to which the Company has made his services available)
subject to the terms and conditions set forth herein and in such manner as shall
not interfere with the performance by the Employee of this duties hereunder.
<PAGE>
2.    Term

      The employment period shall commence as of April 1, 2004 ("Commencement
      Date") and shall continue, unless the parties otherwise agree in writing,
      throughout the term (the "Term of Employment") ending on March 31, 2006
      ("Expiration Date" or "expiration") or such later date as the parties may
      agree upon in writing.

3.    Compensation

      For all services to be performed by Employee under this Agreement, during
      the Term of Employment, the Employee shall be compensated in the following
      manner:

      (a)   Base Compensation

            The Company will pay Employee a salary (the "Base Salary") initially
            at an annual rate of $500,000. The Base Salary shall be payable in
            accordance with the normal payroll practice of the Company (but no
            less frequently than bi-weekly).

      (b)   Bonus Compensation

                  During the Term of Employment, Employee shall be entitled to
            receive an annual bonus (the "Annual Bonus"), if any, as computed
            based upon the following formula:

                  For the purposes of computing the bonus, the EBITDA for
            Stratosphere, Fresca LLC, Arizona Charlie's LLC and GB Holdings,
            Inc. shall be added together. For calendar 2004, the EBITDA Plan
            shall be $74.5 million. For calendar 2005, the EBITDA Plan shall be
            that number as is agreed between Employee and the Company prior to
            December 31, 2004, or, if they cannot agree, then such number as
            determined by the Board.

                  Employee shall be paid his annual bonus on March 31, 2005 and
            2006 as follows:

                  If Combined EBITDA equals or exceeds EBITDA Plan by less than
            7.5%, the bonus shall be equal to $75,000. If Combined EBITDA
            exceeds EBITDA Plan by 7.5% but less than 15%, the bonus shall be
            equal to $150,000. If Combined EBITDA exceeds EBITDA Plan by 15% or
            more, the bonus shall be $250,000.

                  The allocation of the bonus expense shall be made by the Audit
            Committee of the General Partner of American Real Estate Partners,
            LP among all or some of the four properties, as determined to be
            fair and equitable by the Audit Committee. If the Audit Committee
            fails, for whatever reason, to make such allocation, it shall be
            made by the Board of Directors of the General Partner of American
            Real Estate Partners, LP.

      (c)   Taxes

            All amounts paid by the Company to Employee under or pursuant to
            this Agreement, including, without limitation, Base Salary and
            Bonuses, or any other compensation or benefits, whether in cash or
            in kind, shall be subject to normal withholding and
<PAGE>
            deductions imposed by any one or more of local, state and federal
            governments.

4.    Termination

      This Agreement shall terminate and the Term of Employment shall end, on
      the first to occur of (each a "Termination Event"):

      (a)   The Expiration Date;

      (b)   The death of Employee or the total or partial disability that
            renders Employee unable to perform in his position with the Company
            for a period of at least 90 consecutive business days; The discharge
            of Employee by the Company with or without Cause (as defined below);
            or

      (c)   The voluntary resignation of Employee (and without limiting the
            effect of such resignation, Employee agrees to provide the Company
            with not less than 21 days prior written notice of his resignation).

As used herein, "Cause" is defined as Employee's: (i) personal misconduct, (ii)
substance abuse, (iii) negligence or failure to perform work duties or other
obligations to the Company, (iv) conviction of a crime or being charged with a
felony, (v) commission of a fraudulent act; (vi) federal or state criminal
indictment for securities law violation, (vii) commission of an act of moral
ineptitude or dishonesty, (viii) failure to comply with any of the terms of this
Agreement; (ix) willful disclosure, not required by any law or court order, of
any trade secrets or confidential corporate information of the Company to
persons not authorized to know same; (x) any revocation or suspension by any
state or local authority of Employee's license to be the Chief Executive Officer
(or similar position) of any of the Company's subsidiary or affiliated entity or
(xi) any other event which could cause the gaming authorities, having
jurisdiction over the Company or its affiliates, to seek any redress or remedy
against Employee, the Company or its affiliates as a result of Employee's acts
or failure to not.

5.    Effect of Termination

      (a)   In the event that Employee's employment is terminated prior to the
            Expiration Date (i) for any of the reasons set forth in Section 4(b)
            above (i.e., death or disability) or (ii) for any of the reasons set
            forth in Section 4(d) above (i.e., voluntary resignation) or (iii)
            due to the discharge of Employee by the Company with Cause; then, in
            lieu of any other payments of any kind (including, without
            limitation, any severance payments), Employee shall be entitled to
            receive, within thirty (30) days following the date on which the
            Termination Event in question occurred (the "Termination Date") any
            amounts of Base Salary and previously earned bonus due and unpaid to
            Employee from the Company as of the Termination Date in question.

      (b)   In the event that Employee's employment is terminated prior to the
            Expiration Date (i) due to the discharge of Employee by the Company
            without Cause or (ii) in the event that Employee ceases to be
            employed by the Company except such cessation of employment that is
            (A) due to the discharge of Employee by the Company with Cause or
            (B) for any of the reasons set forth in Section 4(b) above (i.e.,
            death or
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            disability) or in Section 4(d) above (i.e., voluntary resignation);
            then, in lieu of any other payments of any kind (including, without
            limitation, any severance payments), Employee shall be entitled to
            receive, within thirty (30) days following the applicable
            Termination Date ____________________ cessation of employment date:

            i.    any amounts of Base Salary and previously earned bonus due and
                  unpaid to Employee from the Company as of the Termination Date
                  in question; and

            ii.   a lump-sum payment in the amount equal to then current Base
                  Salary.

For the purpose of this Paragraph 5, the annual bonus shall be deemed earned
with respect to any year on the last business day of March of the year following
the year with respect to which the Combined EBITDA is computed, so that by way
of example, the bonus with respect to the 2004 Combined EBITDA shall be deemed
earned on March 31, 2005.

6.    Non-Disclosure

      During the term of this Agreement and at all times thereafter, Employee
      shall hold in a fiduciary capacity for the benefit of the Company and its
      affiliates, respectively, all secret or confidential information,
      knowledge or data, including without limitation trade secrets,
      investments, contemplated investments, business opportunities, valuation
      models and methodologies, relating to the business of the Company or its
      affiliates, and their respective businesses, (i) obtained by Employee
      during Employee's employment by the Company and (ii) not otherwise in the
      public domain. Employee shall not, without prior written consent of the
      Company, except to the extent compelled pursuant to the order of a court
      or other body having jurisdiction over such matter or based upon the
      advice of counsel; communicate or divulge any such information, knowledge
      or data to anyone other than the Company and those designated by the
      Company, provided, however, that Employee will assist the Company, at the
      Company's expense, in obtaining a protective order, other appropriate
      remedy or other reliable assurance that confidential treatment will be
      accorded such information disclosed pursuant too the terms of this
      Agreement.

      All processes, technologies, investments, contemplated investments,
      business opportunities, valuation models and methodologies, and inventions
      (collectively, "Inventions"), including without limitation new
      contributions, improvements, ideas, business plans, discoveries,
      trademarks and trade names, conceived, developed, invented, made or found
      by Employee, alone or with others, during the Term of Employment, whether
      or not patentable and whether or not on the Company's time or with the use
      of the Company's facilities or materials, shall be the property of the
      Company and shall be promptly and fully disclosed by Employee to the
      Company. Employee shall perform all necessary acts (including, without
      limitation, executing and delivering any confirmatory assignments,
      documents, or instruments requested by the Company) to vest title to any
      such Invention in the Company and to enable the Company, at its expense,
      to secure and maintain domestic and/or foreign patents or any other rights
      for such Inventions. Employee also agrees to keep confidential and not
      disclose to third persons any personal information regarding any
      controlling person of the Company and any member of the immediate family
      of such person.
<PAGE>
      Employee is scheduled to receive potential bonuses and base salary
      increases under this Agreement, which will benefit Employee based upon the
      performance of the Company's business. Employee represents to the Company
      that the enforcement of the restrictions contained in this section would
      not be unduly burdensome to Employee. Employee agrees that the remedy at
      law for any breach by Employee of the provisions of this section may be
      inadequate and that the Company shall be entitled to injunctive relief,
      without posting any bond. This section constitutes an independent and
      separable covenant that shall be enforceable notwithstanding any right or
      remedy that the Company may have under any other provision of this
      Agreement or otherwise.

      From the date hereof through March 31, 2007, Employee agrees that he will
      not, if he is, for whatever reason, no longer employed by the Company or
      any of its affiliates, employ or offer employment to or suggest to or
      cause any other entity to employ or offer employment to any person who is
      then employed by the Company or any of its affiliates or who was employed
      by the Company or any of its affiliates during any period that Employee
      was so employed and whose employment by the Company or any such affiliate
      has ceased for a period of less than one year. This provision shall not
      apply to Joanne Lamond, Employee's current secretary.

7.    Benefits

      During the Term of Employment, Employee shall be entitled (i) to receive
      certain healthcare and other employee benefits comparable to those
      received by other employees at a similar pay level and/or position with
      the Company; and (ii) 20 business days paid vacation per calendar year, at
      the rate of 1.67 days per each calendar month.

8.    Miscellaneous

      (a)   This Agreement constitutes the entire agreement between the parties
            with respect to the subject matter hereof and supersedes all
            previous written, and all previous or contemporaneous oral
            negotiations, understandings, arrangements, and agreements.

      (b)   This Agreement and all of the provisions hereof shall inure to the
            benefit of and be binding upon the legal representatives, heirs,
            distributes, successors (whether by merger, operation of law or
            otherwise) and assigns of the parties hereto; provided, however,
            that Employee may not delegate any of Employee's duties hereunder,
            and may not assign any of Employee's rights hereunder, without the
            prior written consent of the Company.

      (c)   This Agreement will be interpreted and the rights of the parties
            determined in accordance with the laws of the United States
            applicable thereto and the internal laws of the State of Nevada.

      (d)   Employee covenants and represents that he is not a party to any
            contract, commitment or agreement, not is he subject to, or bound
            by, any order, judgment, decree, law, statute, ordinance, rule,
            regulation or other restriction of any kind or character, which
            would prevent or restrict him from entering into and performing his
            obligations under this Agreement.
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      (e)   This Agreement and all of its provisions, other than provisions of
            Section 5 and Section 6 hereunder, shall terminate upon Employee
            ceasing to be Employee of the Company for any reason.

                                         AMERICAN CASINO & ENTERTAINMENT
                                         PROPERTIES LLC

                                         By:   American Entertainment Properties
                                               Corp., it's sole member

                                         By:   /s/ Keith Meister
                                               ---------------------------------
                                               KEITH MEISTER, DIRECTOR

                                         EMPLOYEE:

                                          /s/ Richard Brown
                                         ---------------------------------------
                                         RICHARD BROWN<PAGE>
                                                                    EXHIBIT 10.6

                                                               EXECUTION VERSION

================================================================================

                                 FIRST AMENDMENT
                                       to
                                CREDIT AGREEMENT
                          Dated as of January 29, 2004

                                      among

                 AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC,
                                as the Borrower,

                      Certain Subsidiaries of the Borrower

                         From Time To Time Party Hereto,

                                 as Guarantors,

                               The Several Lenders

                        from Time to Time Parties Hereto,

                      BEAR STEARNS CORPORATE LENDING INC.,

                              as Syndication Agent,

                                       and

                      BEAR STEARNS CORPORATE LENDING INC.,

                             as Administrative Agent

                            Dated as of May 26, 2004

       BEAR, STEARNS & CO. INC., as Sole Lead Arranger and Sole Bookrunner

--------------------------------------------------------------------------------
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                                TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                                                             PAGE
                                                                             ----
<S>                                                                          <C>
SECTION 1. DEFINITIONS.....................................................    1

   1.01     Definitions....................................................    1

SECTION 2. AMENDMENTS......................................................    1

   2.01     Amendment of Defined Terms.....................................    1

SECTION 3. CONDITIONS PRECEDENT............................................    1

   3.01     Consent........................................................    1
   3.02     Amendment......................................................    2

SECTION 4. MISCELLANEOUS...................................................    2

   4.01     Execution of this Agreement....................................    2
   4.02     No Waiver; Cumulative Remedies.................................    2
   4.03     Counterparts...................................................    2
   4.04     Integration....................................................    2
   4.05     Ratification...................................................    2
   4.06     Severability...................................................    3
   4.07     GOVERNING LAW..................................................    3
   4.08     Headings.......................................................    3
</TABLE>

                                       ii
<PAGE>
            This FIRST AMENDMENT dated as of May 26, 2004 (this "Agreement")
among AMERICAN CASINO & ENTERTAINMENT PROPERTIES LLC, a Delaware limited
liability company ("ACEP" or the "Borrower"), THE FOOTHILL GROUP, INC., as
Issuing Lender, and BEAR STEARNS CORPORATE LENDING INC., as administrative agent
(in such capacity, the "Administrative Agent") for the financial institutions
party to the Credit Agreement (as defined below) as lenders (collectively, the
"Lenders"), to the Credit Agreement dated as of January 29, 2004, among the
Borrower, certain Subsidiaries of the Borrower from time to time party to such
agreement (the "Guarantors"), the Lenders, BEAR, STEARNS & CO. INC., as sole
lead arranger and sole bookrunner, BEAR STEARNS CORPORATE LENDING INC., as
syndication agent and the Administrative Agent.

                               W I T N E S S E T H

            WHEREAS, the parties hereto wish to amend the Credit Agreement to
give effect to the foregoing and to acknowledge the designation of Wells Fargo
Foothill, Inc. and its affiliates ("Foothill") as the Issuing Lender, and

            WHEREAS, Foothill has agreed to accept such designation.

            NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein contained and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto,
intending to be legally bound, agree as follows:

                             SECTION 1. DEFINITIONS

            1.01 Definitions.

            Except as otherwise expressly provided, capitalized terms used in
this Agreement and its exhibits shall have the meanings given in Section 1.1 of
the Credit Agreement.

                              SECTION 2. AMENDMENTS

            2.01 Amendment of Defined Terms

            (a) "Issuing Lender" is hereby amended by replacing the definition
in its entirety with the following:

            "Issuing Lender": Wells Fargo Foothill, Inc., and any of its
affiliates.

                         SECTION 3.CONDITIONS PRECEDENT

            The effectiveness of this Agreement shall be subject to the
satisfaction of each of the following conditions precedent:

            3.01 Consent.

                                       1
<PAGE>
            The Administrative Agent shall have received, from the Majority
Lenders, consents in writing with respect to this Amendment.

            3.02 Amendment.

            The Administrative Agent shall have executed this Agreement and each
of the Borrower and the Issuing Lender shall have delivered to the
Administrative Agent duly executed counterparts of this Agreement.

                            SECTION 4. MISCELLANEOUS

            4.01 Execution of this Agreement.

            This Agreement is executed and shall be construed as an Amendment to
the Credit Agreement, and, as provided in the Credit Agreement, this Agreement
forms a part thereof.

            4.02 No Waiver; Cumulative Remedies.

            This Agreement is made in amendment and modification of the
obligations set forth in the Credit Agreement and the other Loan Documents and,
except as specifically modified pursuant to the terms of this Agreement, the
terms and conditions of the Credit Agreement and the other Loan Documents remain
in full force and effect. No failure to exercise and no delay in exercising, on
the part of any Agent or any Lender, any right, remedy, power or privilege under
this Agreement, the Credit Agreement or the other Loan Documents shall operate
as a waiver thereof; nor shall any single or partial exercise of any right,
remedy, power or privilege hereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. The
rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

            4.03 Counterparts.

            This Agreement may be executed by one or more of the parties to this
Agreement on any number of separate counterparts, and all of said counterparts
taken together shall be deemed to constitute one and the same instrument.
Delivery of an executed signature page of this Agreement by facsimile
transmission shall be effective as delivery of a manually executed counterpart
hereof. A set of the copies of this Agreement signed by all the parties shall be
lodged with ACEP and the Administrative Agent.

            4.04 Integration.

            This Agreement, the Credit Agreement and the other Loan Documents
represent the entire agreement of the Group Members, the Agents and the Lenders
with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by any Agent or any Lender
relative to subject matter hereof not expressly set forth or referred to herein
or in the Credit Agreement or in the other Loan Documents.

            4.05 Ratification.

                                       2
<PAGE>
            Each of the Loan Documents shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed.

            4.06 Severability.

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

            GOVERNING LAW.

            THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEW YORK.

            4.08 Headings.

            Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and shall not
affect the construction of, or be taken into consideration in interpreting, this
Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       3
<PAGE>
      IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the day and year
first above written.

                                       AMERICAN CASINO & ENTERTAINMENT
                                       PROPERTIES LLC, a Delaware limited
                                       liability company

                                       By:  /s/ Denise Barton
                                            ------------------------------------
                                            Name:  Denise Barton
                                            Title: Senior Vice President, Chief
                                            Financial Officer, Secretary and
                                            Treasurer

                [FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENT]
<PAGE>
                                       BEAR STEARNS CORPORATE LENDING INC.,
                                       as Administrative Agent

                                       By:  /s/ Steve O'Keefe
                                            ------------------------------------
                                            Name: Steve O'Keefe
                                            Title: Vice President

                [FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENT]
<PAGE>
                                       WELLS FARGO FOOTHILL, INC., as Issuing
                                       Lender

                                       By:  The Foothill Group, Inc., as Lender

                                       /s/ R. Michael Bohannon
                                       -----------------------------------------
                                       Name: R. Michael Bohannon
                                       Title: Senior Vice President

                [FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENT]

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