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Santa Rosa Rancheria Tachi-Yokut Tribe — Natjonal Indian

Subsequent to the parties’ acceptance of this Agreement, the civil fine assessment

set forth herein will become a Final Assessment Order of the Commission.

ADDITIONAL COVENANTS

This Agreement constitutes the entire agreement between the Chairman and the
Tribe and supersedes all prior verbal or written agreements and understandings
between the parties related to the subject matter hereof. No warranties,
representations, covenants, or agreements shall be binding upon any party except
as set forth herein. Any modification or waiver of any term of this Agreement,
including the modification or waiver of term, must be in writing and signed by
both parties.

The Tribe stipulates that the NOV 06-15 shall be deemed a final order of the
Commission and a final agency action pursuant to 25 C.F.R. § 575.4(c)(1).

The Chairman and the Tribe expressly agree and acknowledge that time is of the
essence in this Agreement. The recitals herein and above set shall be binding
upon the parties, their agents, successors and assigns.

A signature produced by facsimile shall be deemed to be signature and

shall be effective and binding for purpose of theAgreement.

By! a By:
Clarence Atwell, Jr. Philip N. Hogen
Chairman Chairman

WS 3/ob A(E[O6

Date

Date


NATIONAL INDIAN GAMING COMMISSION

SETTLEMENT AGREEMENT

INTRODUCTION

This Settlement Agreement (Agreement) is entered into by and between Clarence
Atwell, Jr., Chairman of the Santa Rosa Rancheria Tachi-Yokut Tribe (Tribe), a
federally-recognized Indian tribe, and Philip N. Hogen, the Chairman of the National

Indian Gaming Commission (Chairman) relating to the matters contained in NOV-06-15.

RECITALS
Whereas, the Tribe has conducted gaming on Indian lands at a facility named the
Tachi Palace Hotel and Casino, formerly known as the Palace Indian Gaming Center, in
Lemore, California since November 4, 1983.
Whereas, the Chairman and the Tribe desire to resolve issues related to
NOV-06-15.
Therefore, the Chairman and the Tribe have agreed to execute this Agreement and

perform in accordance with the following covenants and conditions:

TERMS OF SETTLEMENT

1. This Agreement is entered into pursuant to 25 C.F.R. § 575.6 (b) and shall be
effective upon the signature of all parties.
2. The Tribe acknowledges that its failure to conduct background investigations,

determine the suitability of individuals to work in a gaming operation, license key


employees and primary management officials, and submit a completed license
application, eligibility determination, and investigative report, or Notice of
Results (NOR), to the NIGC for key employees and primary management
officials is a violation of the Indian Gaming Regulatory Act (IGRA), 25 U.S.C.
§ 2701 et seg., NIGC regulations, and the Tribe’s gaming ordinance.

The NIGC acknowledges that the Tribe has quickly taken appropriate steps to
correct the violations that are the subject of NOV 06-15. The Tribe has also
stated and shown its willingness to dedicate sufficient resources to ensure that all
key employees and primary management officials are properly licensed
henceforth.

The Tribe agrees to pay a fine in the amount of Forty Thousand Dollars
($40,000). Twenty Thousand Dollars ($20,000) of the fine will be paid on or
before September 29, 2006. The remaining Twenty Thousand Dollars ($20,000)
will be suspended pending the submission of fingerprint cards, the completion of
background investigations, the determination of the suitability of individuals to
work in a gaming operation, and licensure of all key employees and primary
management officials subject to NOV 06-15. The Tribe will further submit a
completed license application, eligibility determination, and investigative report,
or Notice of Results, to the NIGC for any key employee and primary management
official subject to NOV 06-15 presently outstanding. These submissions must be
received by the NIGC on or before October 30, 2006.

The NIGC Chairman will forgive the suspended Twenty Thousand Dollar

($20,000) portion of the civil fine assessment if, after conducting a site visit, on a


date after October 30, 2006, NIGC field staff can confirm that the licensing files
for all key employees and primary management officials that are the subject of
NOV 06-15, have been properly completed. However, if the review performed by
NIGC field staff reveals that the licensing process for all key employees and
primary management officials, that are the subject of NOV 06-15, were not
completed on or before October 30, 2006, then the remaining Twenty Thousand
Dollar ($20,000) portion of the fine will become payable. In this event, the NIGC
will provide notice to the Tribe that the site visit revealed incomplete licensing
files for any key employee or primary management official that was subject to
NOV 06-15. Such notice will identify which licensing files remain out of
compliance and the manner in which the file is deficient. Payment of the
remaining Twenty Thousand Dollars ($20,000) will be due within thirty (30) days
of such notice.

The Chairman agrees upon execution of this Agreement to waive the right to
impose any further civil fine for NOV-06-15 against the Tribe, unless the Tribe
fails to comply with this Agreement. If the Tribe fails to comply with this
Agreement, the Chairman reserves the right to initiate an enforcement action
against the Tribe as outlined under 25 C.F.R. § 573.6.

The Tribe agrees upon execution of this Agreement to waive its right, if any, to
further review of NOV-06-15, including all rights to appeal to the full
Commission as outlined in 25 C.F.R. § 577 et seq. and judicial review pursuant to

25 U.S.C. § 2714.