Page 2
TO 2008-06

E.1, “Compact Fees" are-then shall be calculated and paid to the State of
Oklahoma based on Dek “adjusted gross covered games revenue" as that term
is defined and ade 25 ble in the compact in effect between
the State of Oklahoma and the Seminole Nation of Oklahoma by subtracting from
the total amount of all receipts (total amounts wagered) in covered games, all

amounts paid out (for prizes), (Total receipts — Total Payments = Adjusted Gross
Covered Games Bevene). The amount to be_paid to the State shall be the

z "NIGC Fine Payment” shal] be calculated and paid to the NIGC based on
"Net Gaming Revenue" and shall be defined as eross gaming revenue (Class II
and Class less amounts paid_o izes and total i

€ ‘excludin: if any). (Gross Revenue ~ Prizes Paid Our
= Total Operating expense = Net Gaming Revenue). For purposes of this
calculation, the term "Operating Expenses" shall include the following: all

gaming employee salaries. wages and benefits; advertising: utilities, sonnties
ing co! ae) fees, and other oj costs plus that

of 9] costs directly attributable to its administration of te
Gaming Enterprise. Peseta oa Bes sear te BCR shall be excluded
from the definition of " ."_The fine ent to NIGC shall be
the appropriate percentage of "Net Gaming Revenue" as specified by the NIGC in
its Sees eee Hinton. an in sconetanne with ie ecye.silife sti.
Pursuant to the NIGC Fine Agreement approved by General Council, the fine
payments to NIGC will be reviewed further for reduction or abatement at the end
of the eighteen months from the signing of the agreement by both parties.



SEMINOLE NATION OF OKLAHOMA
TO 2008-06

AN ORDINANCE MODIFYING TITLE 15, GAMING, SECTION 501 REGARDING
REVENUE TO COMPLY WITH TITLE 8 SECTION 212 (a)X18)(C) CONCERNING
GAMING.

BE IT ENACTED BY THE GENERAL COUNCIL. OF THE SEMINOLE NATION OF
OKLAHOMA:

Section 100. Findings:
(1) The General Council finds that the modifications to the gaming revenue
provisions in Section 501 Title 15 contained in TO 2008-03 were not accepted by
the National Indian Gaming Commission and the attached modifications were
necessitated; and

(2) The Finance Committee has reviewed and approved the proposed changes to
Section 501 of Title 15.

Section 200. Purpose:

To modify the ordinances which govem the gaming revenue of the Seminole
Nation of Oklahoma.

Section 300. Authorization:

Title 15, Section 501, shall be modified as follows (underlining denotes additions,
strike through denote deletions):

Section 501. Gaming Revenue

A. The accounting division of the Seminole Nation Division of Commerce shall

secouning division of it Senials Nation Division of Cunhares for recording
shall also ‘perform the following calculations each month:



Page 3
TO 2008-06

~ Seminole Nation Of the-x

3. "Adj Net Profit" shall ing Revenue" as that term is
defined in Section 501 inus Compact Fees plus the NIGC Fine
until it is satisfied. Net Gaming Revenue — (Compact Fee + NIGC Fine) =
‘Adjusted Net Profit. Once the NIGC Fine is satisfied, the definition of operating
costs as defined in Section 501(A)(2) shall continue to apply for pumoses of the
monthly calculations of Adjusted Net Profit, including the amount of the
latory fee le to NI na dy basis or on such schedule as the
NIGC may specify by mle.

B. Prior to the monthly distribution of Adjusted Net Profit. SNDOC shall transfer
the amount calculated for the Compact Fee and the NIGC Fine (until satisfied)
from the gaming depository account into segregated accounts(s) and from such
account(s), SNDOC shall remit such amounts payable to the State of Oklahoma

and the NIGC in accordance with the schedules specified in the Compact and by
the with the NI tively.

XEC. On the 15* of cach month, SNDOC shall remit to the Treasurer of the

(70%) of the Adjusted Net Profit from gaming, which shall be-ef co
Nation's share.; sha te-the-Treas the Se Nation-by-the
15". efeack- month and The Nation's share shall be used-te-fund through

applied in accordance with an approved General Council resolution; to fumd tribal
government or programs;: to provide for the general welfare of the Nation and its
members; to promote tribal economic development; to donate to charitable
organizations; or to fimd operation of local government agencies of the Seminole
Nation.

ED. The remaining thirty percent (30%) of the Adiusted Net Revenue Profit shall
be used by the SNBA SNDOC monthly for its-use-i# Non Direct Gaming-Related
Operating Expenses, its corporations, partnerships, joint ventures, other
arrangements, er-under takings or other activities as authorized by Title 8 of the
Seminole Nation Code of laws.


anONAL 'No,

9
Von a

7)
%G com?

JUN 6 2008

E. Kelly Haney, Chief
Seminole Nation of Oklahoma
P.O. Box 1498

Wewoka, OK 74884

Fax: (405) 257-7209

Elizabeth Homer

Homer Law, Chartered

1730 Rhode Island Avenue, NW
Suite 501

Washington, DC 20036

Fax: (202) 955-5605

Re: Seminole Nation of Oklahoma
Gaming Ordinance Amendment

Dear Chief Haney and Ms. Homer:

The letter responds to Ms. Homer’s request on behalf of the Seminole Nation of
Oklahoma (Nation) for the National Indian Gaming Commission (NIGC) to review and
approve an amendment to the Seminole Nation Public Gaming Act (Amendment). The
Nation’s General Council approved the Amendment in Tribal Ordinance # TO-2008-06
on April 8, 2008. The Amendment was received by the NIGC on April 15, 2008.

The proposed amendment modifies Section 501 and reflects revisions to the Nation’s
internal gaming revenue accounting practices. The proposed amendment provides a
definition for “NIGC Fine Payment” and, in part, provides the following:

“NIGC Fine Payment” shall be calculated and paid to the NIGC based on
“Net Gaming Revenue” and shall be defined as gross gaming revenue
(Class II and Class IIT) less amounts paid out as, or paid for prizes and
total operating expenses (excluding management fees, if any). (Gross
Revenue — Prizes Paid Out — Total Operating expense = Net Gaming
Revenue). For purposes of this calculation, the term “Operating Expenses”
shall include the following: all gaming employee salaries, wages and
benefits; advertising; utilities, supplies, gaming commissions, regulatory
fees, and other operating costs plus that portion of SNDOC’s operating
costs directly attributable to its administration of the Gaming Enterprise.

NATIONAL HEADQUARTERS 1447 L St. NW, Suite 9100, Washington, DC 20005 Tel: 202.632.7003 Fax: 202.632.7066 WWW.NIGC.Gov

REGIONAL OFFICES Portland, OR; Sacramento, CA; Phoenix, AZ; St. Paul, MN; Tulsa, OK


Page 4
TO 2008-06

Section 400. Effective Date:

The modifications to Sections 501 of Title 15 shall become effective immediately
upon passage of this Ordinance by the General Council, provided that if the NIGC
Chairman should disapprove this amendment, it shall immediately cease to be of
any force or effect. Further, TO 2008-06 shall supersede the enactment of TO
2008-03.

CERTIFICATION
PASSED AND APPROVED by the General Council of the Seminole Nation of Oklahoma this

8" day of April 2008, at Mekusukey Mission, south of Seminole, Oklahoma, by a vote of 25
Yes, 1 No, 0 Abstain, 2 quorum of Fifteen (15) Council members being present.

We

‘ymathia Hooper, General Council
General Council, Seminole Nation of Oklahoma



Seminole Nation of Oklahoma, Tribal Ordinance # TO-2008-06, Section 300 (April 8,
2008). The NIGC Office of General Counsel was concerned that the definition of
“Operating Expenses” within the broader definition might possibly be interpreted to
included costs that were not gaming related and discussed the issue with Ms. Homer on
June 3, 2008. At that time, she explained that the intent of the proposed amendment is to
limit “Operating Expenses” to those expenses that are gaming related and indicated that it
appeared there is a scrivener’s error in the definition of “Operating Expenses.” Further,
Ms. Homer represented that the colon in the definition of “Operating Expenses” should
have appeared after the word gaming and offered to correct the placement when the
amendment was codified.

In addition, Ms. Homer further acknowledged that the proposed Amendment does not
amend the Agreement to Modify the Civil Fine Assessment Payment Schedule Pending
the Commission’s Consideration of the Nation’s Petition for Reduction and/or
Modification of Civil Fine Assessment (Agreement) between the Nation and the
Commission, dated April 2, 2008. As you are aware, the Agreement can only be amended
by the full Commission.

With the express understanding that the definition of “Operating Expenses” within the
definition of “NIGC Fine Payment” shall be interpreted to include only gaming-related
operating ex) ; and further that this approval does not amend the Agreement, I

endment for review and approval. If you have any
Attorney Esther Dittler at (202) 632-7003.


Elizabeth L, Homer 202.955.5601
Attorney A: Lew

PY Omer. a

ehomer@homertaw.com 202,955,5605 fox
Chartered 1730 Rhode Island Ave., NW
Suite 601
Washington, DC 20036
April 14, 2008
APR 7 4 any
Chairman Philip Hogen

National Indian Gaming Commission
144] L Street NW

Suite 9100

Washington DC 20005

Re: Seminole Nation of Oklahoma
Gaming Ordinance Amendment

Dear Chairman Hogen:

In accordance with 25 C.F-R-§ 523.3 enclosed for your review is the Amendment to the
Seminole Nation Public Gaming Act adopted by the Seminole Nation General Council on April
8, 2008.

The Amendment is limited to modification of Section 501 of Title 15 of the Seminole Nation
Code of Laws. This change to the Amendment reflects revision of gaming revenue accounting
practices of the Seminole Nation Division of Commerce. All other provisions of the Seminole
Nation Public Gaming Act remain unchanged. There have been no changes to the Nation’s
compact with the state of Oklahoma.

Please note that the Tribal Ordinance passed on April 8, 2008, TO 2008-06, explicitly supersedes
TO 2008-03 which was passed in March 2008. Thank you for your attention to this matter. If
you have any questions regarding this submission, please contact me at 202-955-5601.

Sincerely,

Eli tho Hoth ce
Elizabeth L. Homer

Counsel

cc: Enoch K. Haney, Principal Chief
Encl.