CONSTRUCTION, OPERATION AND 
RECIPROCAL EASEMENT AGREEMENT

(Aladdin Gaming/Bazaar/Music)

THIS CONSTRUCTION, OPERATION AND RECIPROCAL EASEMENT AGREEMENT (this "REA") is made and entered into as of February 26, 1998, by and between ALADDIN GAMING, LLC, a Nevada limited-liability company ("Aladdin Gaming"), ALADDIN BAZAAR, LLC, a Delaware limited liability company ("Bazaar Company"), and ALADDIN MUSIC HOLDINGS, LLC, a Nevada limited-liability company ("Aladdin Music").

RECITALS:

A. Aladdin Gaming is the owner of that certain real property located at 3667 Las Vegas Boulevard South in Clark County, Nevada (the "County") which is more particularly described on Exhibit "A-1" attached hereto (the "Site"). The Site is currently improved with certain improvements commonly known as the "Aladdin Hotel and Casino" which are being, or will be, demolished and redeveloped, pursuant to the terms of that certain Site Work Development and Construction Agreement dated as of the date hereof, among Aladdin Holdings, LLC, Aladdin Gaming and Bazaar Company (the "Site Work Agreement").

A memorandum of the Site Work Agreement shall be recorded in the Official Records of the County immediately following the recordation of this REA. In addition to the demolition contemplated by the Site Work Agreement, certain portions of the Site will be prepared pursuant to the terms of the Site Work Agreement with various on-site and off-site infrastructure improvements to permit the development of the Redeveloped Aladdin (as hereinafter defined) described in this REA.