National Indian Gaming Commission

SETTLEMENT AGREEMENT

SA-07-03

INTRODUCTION

This Settlement Agreement (Agreement) is entered into by and between the
Squaxin Island Tribe (“the Tribe”), a federally-recognized Indian tribe, 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-07-03.

RECITALS

1. Whereas, the Indian Gaming Regulatory Act (“IGRA”) 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. Sections 2710 or 2712. See 25 U.S.C. § 2713.

2. Whereas, under the regulations of the NIGC, 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 any provision of a tribal gaming
ordinance or resolution approved by the Chairman;

3. Whereas, on July 9, 2007, the NIGC Chairman issued NOV-07-03 for the Tribe’s
failure to submit an independent audit report within 120 days after the end of the
gaming operation’s fiscal year.

4, Whereas, the Chairman and the Tribe desire to achieve an amicable resolution of
Notice of Violation No. NOV-07-03.

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

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

The Tribe agrees that it was required to submit a timely audit report to the NIGC
for Little Creek Casino Resort for the fiscal year ended September 30, 2006.

The Tribe agrees that it submitted the audit report for Little Creek Casino Resort
for the fiscal year ended September 30, 2006, to the NIGC in an untimely fashion.

The Tribe agrees that the failure to submit an annual independent audit report for
its gaming operation in a timely fashion is a violation of IGRA, 25 U.S.C. § 2701
et seq., NIGC regulations, and the Tribe's gaming ordinance.

The Tribe agrees to pay a civil fine of five thousand dollars ($5,000), made
payable to the U.S. Treasury and delivered to the NIGC. Two thousand five
hundred dollars ($2,500) of the fine shall be due within thirty (30) days after the
Effective Date. The remaining two thousand five hundred dollars ($2,500) will be
suspended pending the Tribe’s compliance with all applicable deadlines for all
submissions required by the NIGC for the fiscal years ending September 30,
2007, and September 30, 2008. For purposes of this Agreement, the following are
the submissions required by the NIGC: annual independent audit, agreed upon
procedures report regarding compliance with internal controls for class II and
class III gaming, and quarterly statements and fees. If the Tribe meets all
applicable deadlines through fiscal years 2007 and 2008 for these required
submissions, the NIGC Chairman will forgive the suspended two thousand five
hundred dollar ($2,500) fine. If the Tribe fails to submit any of the required
submissions in a timely manner, the remaining two thousand five hundred dollars
($2,500) of the fine will become due thirty (30) days from the deadline missed.

By entering this Agreement, the NIGC Chairman agrees to waive his right to
impose any additional civil fine or a closure order against the Tribe for the matters
addressed in NOV-07-03, unless the Tribe fails to comply with this Agreement.

Tf the Tribe fails to comply with this Agreement, the NIGC Chairman reserves the
right to issue another NOV, additional civil fines, and/or a closure order to resolve
the Tribe’s initial violation and/or breach of this Agreement.

The Tribe agrees 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. Sections 577 et seq. and judicial
review pursuant to 25 U.S.C. Section 2714.

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ADDITIONAL COVENANTS

This Agreement constitutes the entire agreement between the NIGC Chairman
and the Tribe relating to the enforcement matter that is the subject of this
Agreement. Any modification or waiver of any term of this Agreement must be
in writing and signed by both parties.

The Tribe stipulates that this Agreement shall be deemed to be the subject of a
final order of the NIGC under 25 C-F.R. § 575.4(c)(1) and a final agency action
pursuant to 25 C.F.R. § 577.9(d).

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

The parties agree that after the Effective Date, this Agreement shall be a public
document and may be published or disclosed by either party.

This Agreement may be executed on one or more counterparts and each shall
constitute an original. A signature produced by facsimile shall be deemed to be.
an original signature and shall be effective and binding for purpose of the
Agreement.

Squaxin Island Tribe of Indians National Indi GCamjnf C

Jha

Ly

J

es L. Peters, Chairman \ DRilip

f
‘N/ Hogé, Chairman

Date: 7-AY-°7 Date: 1/18/67

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