National Indian Gaming Commission

SETTLEMENT AGREEMENT
SA-08-13

INTRODUCTION

‘This Settlement Agreement (Agreement) is entered into by and between the
Spokane Tribe of Indians (T'ribe), a federally-recognized Indian tribe, with tribal
headquarters in Wellpinit, Washington and the Chairman of the National Indian Gaming
Commission (NIGC Chairman), relating to the matter contained in the NIGC Chairman's
Notice of Violation No. NOV-08-13.

RECITALS
1. Whereas, the Indian Gaming Regulatory Act (GRA) authorizes the NIGC
Chairman to issue civil fines for violations of the IGRA, NIGC regulations, or
tribal regulations, ordinances, or resolutions approved by the NIGC Chairman
under 25 U.S.C. §§ 2710 or 2712. See 25 USC. § 2713()().

2 Whereas, under NIGC regulation 25 C.F.R. § 573.3(a), the Chairman may issue a
Notice of Violation (NOV) to any person for violations of any provision of the

IGRA, NIGC regulations, or aay provision of a tribal gaming ordinance or

resolution approved by the Chairman.

3: Whereas, on July 25, 2008, the NIGC Chairman issued NOV-08-12 for the
‘Tribe's failure to submit an independent audit report within 120 days after the end

of the fiscal y for the Chewelah Casino in Chewelah, Washington and the Two Rivers
Casino in Davenport, Washington (two casinos).

4 Whereas, the Chairman and the Tribe desire to achieve an amicable resolution of
NOV-08-13 and in recognition of the responsive and remedial efforts of the Tribe to
prevent any future late audit.

5: Therefore, the Chairman and the Tribe have agreed to execute this Agreement and
perform in accordance with the following covenants and conditions:

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TERMS OF SETTLEMENT

6. This Agreement is entered into pursuant to 25 C.F.R. § 575.6 (b) and shall be
effective upon the date that it is signed by the last party to sign this Agreement.

7. The Tribe agrees that it was required to submit a timely audit report on its two
casinos to the NIGC for the fiscal year which ended September 20,2007. ‘The audit report
was due to the NIGC on or before January 28, 2008.

8. ‘The ‘Tribe agrees that it submitted the audit report for its two casinos
for the fiscal year that ended September 30", 2007, which was due to the NIGC on Jan. 28,
2008 late. The audit report was not filed until February 13, 2008, 16 days late.

9: The ‘Tribe agrees that the failure to submit an annual independent audit report for
its gaming operations in a tmely fashion is a violation of NIGC regulations and the Tribe’s
gaming ordinance.

10. The Tribe agrees to pay a civil fine of pwo thousand dollars ($2,000), made

payable to the U.S. Treasury and delivered to the NIGC as follows: one thousand dollars of
the fine ($1,000) shall be due within thirty (30) days after the Effective Date of this
agreement, and the remaining fine of one thousand dollars ($1,000) will be suspended
pending the Tribe’s compliance with the filing of the annual audit required by the NIGC for
the fiscal year ending September 30th, 2008. If the Tribe meets the deadline for filing the
annual audit for 20018, the NIGC Chairman will forgive the suspended one thousand
($1,000) dollar fine. If the ‘Tribe fails to submit the annual audit for 2008 ona timely basis,
the remaining one thousand dollar fine ($1,000) dollars of the fine will become due thirty
(30) days from the missed deadline.

11. The audit report submission will be considered timely if received on or before
January 28", 2009.

12, By entering this
impose
addre

Agreement, the NIGC Chairman agrees to waive his right to
ny addidonal civil tine or a closure order against the Tribe for the matters
1 in NOV-08-13, unless the Tribe fails to comply with this Agreement.

13. If the ‘Lube fails to comply with this Agreement, the NIGC Chairman reserves the
right to issue additional civil fines, and/or a closure order to resolve
the Tribe's initial violation and/or breach of this Agreement.

14. The Tribe 3 upon execution of this Agreement to waive the right to further
review of matters addressed in this Agreement including all rights to appeal to the full
Commission, as set forth in 25 C.F.R. Part 577 and judicial review pursuant to 25 U.S.C. §
2714.

Hie

ADDITIONAL COVENANTS

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16. This ‘ment constitutes the entire agreement between the NIGC Chairman
and the Tribe relating to the enforcement matter set forth in NOV 08-13. Any
modification or waiver of any term of this Agreement must be in writing and

signed by both parties:

14. The ‘Tribe agrees that this Agreement shall be deemed to be the subject of a
final order of the NIGC under 25 C.E.R. § 575.4(0)(1) and a final agency action
pursuant to 25 CAR. § 577.9(d).

15. The NIGC Chair
of the esse:
parties, their

an and the Tribe expressly agree and acknowledge that time is
ice in Us Agreement. The recitals herein shall be binding upon the
onal representatives, successors and assigns.

igents, heirs, pers

16. The parti

document and may

ree that after the Effective Date, this Agreement shall be a public
be published or disclosed by cither party.

1% ‘This Agreement may be executed on one or more counterparts and each shall
constitute an original. \ signature produced by facsimile shall be deemed to be

an original signature and shall be effective and binding fur purpose of the

Agreeme

Spokane I

> of Indians a

Philip N. Hogen, Chairman

ial Date AUG 2.7 2008

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