13, This Agreement constitutes the entire agreement between the Chairman and
Soboba 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.

14. Soboba stipulates that the Notice of Violation shall be deemed a final order of the
Commission and a final agency action pursuant to 25 C.F.R. § 577.9(d).

15. The Chairman and Soboba 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, heirs, personal representatives, successors and assigns.

16. _ A signature produced by facsimile shall be deemed to be an original signature and
shall be effective and binding for purpose of the Agreement.

17. Acceptance of this Agreement is contingent upon approyal oboba Tribal

Council on or before September 15, 2006.

Soboba Band of Luisetio Indians

By: & Cc [-L §
Robert J. Salgado, Sr.

Chairman Chairman

AUG 16 2006 BNW

Date Date


SETTLEMENT AGREEMENT

SA-06-13

INTRODUCTION
This Settlement Agreement (“Agreement”) is entered into by and between the
Soboba Band of Luisefio Indians ("Soboba"), a federa!ly-recognized Indian tribe, by its
Chairman, Robert J. Salgado, Sr., and Philip N. Hogen, the Chairman of the National
Indian Gaming Commission (“Chairman”) relating to the matters contained in Notice of

Violation No. NOV-06-13.

RECITALS

Whereas, Soboba conducts various gaming activities on its Indian lands within the
boundaries of the Soboba Indian Reservation in a facility known as the Soboba Casino,
and has conducted Class III gaming activities therein pursuant to a Tribal-State Compact
that has been in effect since May 16, 2000;

Whereas, the Chairman has caused Notice of Violation No. NOV-06-13 to be
issued to Soboba based upon Soboba's failure timely to submit an independent audit of its
gaming operations for the calendar year 2005; and

Whereas, the Chairman and Soboba desire to resolve the issues set forth in NOV-
06-13 without the need for further adversary proceedings,

Now, therefore, the Chairman and Soboba have agreed to execute this Agreement

and perform in accordance with the following covenants and conditions:


TERMS OF SETTLEMENT
This Agreement is entered into pursuant to 25 C.F.R. § 575.6 (b) and shall be
effective upon the signature of all parties.
On July 19, 2006, the NIGC issued Notice of Violation No. NOV-06-13 to
Soboba based upon Soboba's failure timely to submit an annual audit report as
required by 25 U.S.C. §2710(b)(2)(C) and 25 C.F.R. §§571.12 and 571.13.
Rather than contest the issues of the timeliness of the submission of the annual
audit report Soboba agrees to the terms and conditions set forth in this Settlement
Agreement.
Soboba agrees that it was required to timely submit an annual audit report of its
gaming operations for the fiscal year ending December 31, 2005 to the NIGC.
Soboba agrees that it did not timely submit to the NIGC an annual audit report for
the fiscal year ending December 31, 2005, as required by the Indian Gaming
Regulatory Act (“IGRA”) and applicable NIGC regulations.
Soboba admits that the failure to submit an annual audit report in a timely fashion
is a violation of IGRA and NIGC regulations.
Soboba agrees to submit its annual audit report for the fiscal year ending
December 31, 2005 no later than September 15, 2006.
Soboba further agrees to submit its annual audit report for the fiscal year ending
December 31, 2006 no later then April 30, 2007.
Soboba agrees to pay a fine in the amount of Five Thousand Dollars ($5,000.00)
for the audit report violation. Two Thousand Five Hundred Dollars ($2,500.00)

of the fine will be paid on or before September 15, 2006. Provided that the audit


report for the fiscal year ending December 31, 2005 is submitted by September
15, 2006, the remaining Two Thousand Five Hundred Dollars ($2,500.00) of said
fine will be suspended pending the submission of the annual audit report for the
fiscal year ending December 31, 2006. Upon submission of the annual audit
report for the Soboba Casino for the fiscal year ending December 31, 2006 by
April 30, 2007, the Chairman will forgive the suspended Two Thousand Five
Hundred Dollar ($2,500.00) fine. If Soboba fails to submit either of the
aforementioned audit reports by the dates set forth herein, Soboba will pay the
remaining Two Thousand Five Hundred Dollars ($2,500.00) of the fine on or
before May 31, 2007.

The Chairman agrees upon execution of this Agreement to waive the right to
impose any further civil fine for Notice of Violation No. NOV-06-13 against
Soboba, unless Soboba fails to comply with this Agreement. If Soboba fails to
comply with this Agreement, the Chairman reserves the right to initiate an
enforcement action against the Soboba Casino as outlined under 25 C.F.R.
§573.6.

Soboba agrees upon execution of this Agreement to waive its right, if any, to
further review of Notice of Violation No. NOV-06-13, 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.

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

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