SETTLEMENT AGREEMENT 

This Settlement Agreement rApeement7') is entered into by and between the 

TMopthlocco Tribal Town (''Tribe''), a federally-recognized Indian tribe, the Thlopthlocco Tribal 

Garrzing Commission ("TTGC") and the Chairwarnan of the National Indian Gaming 

Commission ("'NICK Chair"* or oman any'), rerelating to the matters contained in the NICK 

Chairwoman's Notice of Violation No. NOV-12-1. 

1. Whereas, the Indian Gaming Regulatory Act, 25 U.S.C. 5 2701 et seq. ("IGRA"), 

authorizes the NIGC Chairwoman to issue civil hes for violations of the IGRA, National 

lndian Giiming Co&ssion ('WGC") regulations, or tribal regulations, or~ces, or 

resolutions approved by the NIGC Chairworn under 25 U.S.C. $5 2710, 2712. 25 

U.S,C.§ 2713(a)(1). 

2. Whereas, under the regulations of the NIGC, 25 C.F.R § 575.3(a), the NIGC 

Chairwoman 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 Chhmm. 

3. Whereas, under MGC regulation, 25 C.F.R § 573.6(a)(T), it is a mbstaatial violation of 

IGRA for a third party to manage all or part of an Xndian gaming operation without a 

contract approved by the NIGC Chair. 

4. Whereas, on August 22,20 12, the NIGC Chairwoman issued NOV- 12- 1 alleging that the 

Tribe permitted the Titan Network LLC (Titan'')), Mercury Gaming %up LLC 

("Me~ury'I'), and the named principals, officers, employees and agents thereof 

(collectively, "Ti~ercury") to wage tZle Tribe's gaming facility, known as the 

Golden Pony Casino (Gaming Facility"), hm on or about September 6, 2005 to and 

including December 3 1, 2010, without a management contract appmved by the NPGC 

Chair. 

5. Whereas, the Tribe and the NIGC Chairwoman desire to resolve this matter without 

mderhbg the burdens, costs, risks and uncertainties associated with formal 

administrative and judicial prodings. 

6. Therefore, the NIGC Chahwoman, the Tribe have agreed to execute this Agreement and 

perform in accordance with the following covenants and conditions: 
This Agreement is entered into by the Tribe and the TTGC by duly authod officers or 

agents and the NIGC Chairwarnaa pmuant to 25 C.F.R 8 575,6(b) and shaIl be effective 

upon execution by the pasties CEffective Date"). 

The Tribe admits that Tim Mercury, aud its principals, officers and employees did in 

fkt manage the Gaming Facility without an NLW-approved management contract in 

violation of the IGRA and its implementing regulations. 

The Tribe achowledges that IGRA and NIGC regulations authorize a third party to 

manage a gaming operation or a part thereof only mder a management contract that has 

been approved by the NIGC Chair. 

The Tribe admits tbt it did not submit the executed management agreement between it 

and Mercury Gaming to the NICK as required by NIGC regulations. 

The Tnie agrees that the MGC possesses jurisdiction ova this action, and that the MGC 

Chairwoman has authority to levy and collect civil fines for such vioIations. 25 U.S.C. 5 

271 3(a). 

The Tribe agrees to pay a cid fine of three hundred thousand dollars ($300,000.00). 

Fifty thousand dollass ($50,000.00$ of the he shall be due within sixty (60) days after 

the Effective Date of this Agreement, made payable to the U.S. Treasury and delivexed to 

the NIGG at 1441 L Street N.W., Suite 9100, Washington, D.C. 20005. The remaining 

two hundred thousand dollass ($250,000.00) will be suspended pending completion 

of the corrective actions set forth ia Section Fourteen (141, below. If all corrective 

actions are completed, two hundred fifty thousand dollars ($250,000.00) of the fme will 

be forgiven. 

The NTGC Chairwoman acknowledges that, prior to the execution of this Settlement 

Agreement, the Tribe and the TTGC took affirmative steps to correct the circumstances 

@giving rise to this matter by severing all business ties involving Wan gaming with Titan 

and Mercury, including all known principals, officers, employees and agents thereof, and 

pledge b assume full managerial and operationdl control over the Golden Pony Casino 

("Ca~ino") through its Tbloptldocco Economic Development Authority ("TEDA") Bad 

of Directors. While such actions represent a significant step toward compliance, the 

following additional corrective actions are required by the Tribe and the T-TGC: 

A. The Tribe, TTGC andlor any other tribal entity shall prohibit Titan and 

Mercury, including all known and future principals, officers, employees 

and agents thereof, andor any entiv owned in whole or part or otherwise 

asswiatd with TitadMemq or Anthony DeMartino, JL, Michael 
Gavenchak, Doug Pattison, and Lino Vazquez hm any association of my 

kind with the Gaming Facility, my tribal gaming activity, and any tribal 

gaming facility. 

B. The Tribe, ?TGC mdor any other tribal entity shall not employ or retain 

TiWercury, including dl known principals, officers, employees and 

agents thereof or my entity owned in whole or part or otherwise 

associated with TitadMercury or Anthony DeWo, Jr., Michael 

Gavenchak, Doug Patiison, and Lino Vazquez to opefate, manage, consult, 

or provide any type of materials, machines or services related directly or 

indirectly to the operation or management of any of its gaming facilities. 

The Tribe, TTGC and/or any other tribal entity shall not pennit 

TitanlMermry, including dl known principals, officers, employees and 

agents thereof or any entity owned in whole or part by or in any way 

associated with TitanMercwy or Anthony DeMartho, Jr., Michael 

Gavenchak, Doug Pattison, and Lino Vazquez to develop, finance, or 

otherwise have a direct w indireci bcid interest in any existing or 

future gaming facility andor operatian or to provide any type of materials, 

machines, goods or any type of services to the Tribe" existing or future 

gaming facilities or operations. 

D. The Tribe, TTGC andm any other tribal entity shalt not enter any type of 

arrangement with TitanlPvlercury, including all known principals, officers, 

employees and agents thereof, any entity owned in whole or part by 

TitadMercury or Anthony DeMho, Jr., Michael Gavenchak, Doug 

Pattison, and Lino Vazquez or any entity in any way associated with 

TitadMercury that provides TitadMercury or such entities, either directly 

or indirectly, with a sum of money and/or future sums of money as 

consideration for such entities' past gaming-related services to the Tribe or 

any tribal entity andlor as consideration for the prohibition of such 

gaming-related services in the future. 

E. The Tribe, ITGC andfor any other tribal entity shall not have any type of 

relationship involving Indian gaming with TihdMe~~:ury~ including all 

known principals, offim, employees and agents thereof, any entity 

owned in whole or part by TitadMercury ox Anthony Demo, Jr., 

Michael Gavenchak, Doug Pattison, and Lho Vazquez or any entity in 

my way associated with TitadMercury dor any entity in which 

TitadMercury or an entity owned by them is the majority shareholder. 

F. All Business Committee members, the RGC and its staff, all TEDA 

Board members, the General Manager of the Gaming Facility? the Chief 

Executive Officer of the TEDA Board, the ComptrollerlFhmce Director 

of the Gaming Facility and hisher staff, and any other person(s) 

authorized to sign checks for the Gaming Facility will attend NEW 

training addressing the violations set forth in NOV 12-1, roles and 

responsibilities and any other matters deemed pertinent by the NIGC to 
the &cement of the TTGC, the TEDA Board, the Finance Department 

and the employees of the Gaming Facility. This training will be conducted 

by the NIGC at a facility on the Tribe" lands. The NlGC and the Tribe 

will schedule 113utwUy agreeable dates for this tmhbg; however, the 

Tribe agrees that it will provide at least four (4) potential weeks between 

the Effective Date of this Agreement and March 1, 2014 den this 

tmhhg may occur. Expenses incurred associated with the tmhhg, such 

as travel, meals and accommodations, will be covered by the Tribe or the 

person attending the .training and incurring the expense. 

G. For a period of three (3) years beginning on the Effective Date of the 

Agreement, the Tribe agrees that it will dedicate the mount of $25,000.00 

per year for training of the TTGC, the TEDA Board and employees of its 

Gaming Facility (including the Finance Deparbnent), as wel as 

enhancements to the TTGC, EDA Board and Finance Department. The 

Tribe agrees to submit documentation to the NIGC demonstrating the 

expenditure of $25,000 mdIy for the three year period (including the 

subject matter and the specific officers or employees in attendance) no 

later than thirty (30) days after each training er enhancement. Funds 

expended relating to tmining providd by the MGC in accordance with 

this Agreement shall not be included in the dedicated fund. If the MGC 

has any concerns regarding the Tribe's tmhhg fund or its schedule of 

training, it will provide the Tribe its concerns in writing, and the Trik 

agrees to work in good faith with the NGC to remedy its concerns. 

H. For a period of three (3) years beginning on the Effective date of the 

Agreemeat, the Tribe agrees to submit every contract related to the 

Gaming Facility and any new gaming opedon that it enters into with a 

third party for which cumpensation is $100,000.00 or more per year to the 

NIK Office of General Counsel for review and legal opinion regarding 

whether the contract is a management contract and whether it violates the 

sole proprietary interest mdate of IGICP, 

15. The Tribe and the TTGC are aware of their rights to: 

A. Submit written information about the violation to the Chairwoman prior to 

issuance of a civil fine assessment by the Chahvornan and to have at least 

fifteen (15) days after the issuance of a notice of violation to do so under 

25 C.F.R 8 575.5; 

B. Appeal the notice of violation to the full Commission under 25 C.F.R Part 

584 or 585; 

C. Obtain a hearing to contest the matter under 25 C.F.R Part 5 84; 

D. Request a reduction or waiver of a civil fine under C.F.R 5 575.6; and 

E. Seek judicial review of any fmd detemhation by the full Commission 

pursuant to 25 U.S.C. 8 2714. 
16. In exchange for the terms, conditions, and understandings set forth herein, the Tribe 

hereby waives the rights specified in Section Fifteen (15) of this Agreement and any 

otber right to seek judicial review or otherwise challenge or contest the Chahwm's 

actions under this Agreement, including the right to have the Chaboman provide her 

writeen analysis of the factors to be considered in. assessing a civil fine set forth under 25 

C.F.R 5 575.4. The Tribe further agrees that this Agreement fully resolves their appeal 

of NOV 12-1. To that end, the Tribe waives d1 rights to pursue an appeal of the 

Presiding OEcid's ordm relative to this Agreement; waives all rights to any Wer 

proceedings before the NIGC reg&g this matter; and waives all rights to judicial 

review of such pmceediags. 

17. Furhermore, the Tribe and the TTGC attest fiat: 

A. As of the date of execution of this Ag~eement, the Tribe has severed dl 

business ties with TibdMercury, AnAnthony DeMartho, Jr., Michael 

Gavench& Doug Pattison, Lino Vazquez and dl known principals, 

officers, employees and agents thereof; any entities owned in whole or 

part by TitadMercury, Anthony DeM&a, Jr., Michael Gavenchak, 

Doug Pattison, and Lino Vazquez; any entity otherwise assmkted in any 

way with TitadMercury, Anthony DeMho, Jr., Michael Gavenchak, 

Doug Pattison, and Lino Vazquez; andlor any entity in which 

TitdMercury, AnAnthony DeMartino, Jr., Michael Gavenchak, Doug 

Pattison, Lho Vazquez or an entity owned by rhem is the majority 

shareholder. 

B. The Tribe and the TTGC agree to fdly comply with the corrective 

measures set forth in Section Fourteen (14) of this Agreement. 

C. The Tkibe agrees to provide full cooperation to the NIGC in relation to the 

pending admini-tive appeal. involving TitdMercwy, Anthony 

&Martino, Jr., Michael Gavenchak, Doug Pattison, and Lho Vazquez, 

which arose out of NOV 12-1 and any other related dmhistmtive or 

federal litigation against TitdMercury, Anthony DeMartino, Jr., Michael 

Gavenchak, Doug Pattison, and Lino Vazquez for mauaging the Gaming 

Facility without an approval management contract ha September 6, 

2005, to and including December 3 I, 201 0. Such cooperation includes but 

not limited to: (I) providing MGC dI documents or other evidence in the 

Tribe's possession related to the above administrative appeal; and (2) 

making my and ail officials and employees of the Tribe, the 'ITGC and 

the Golden Pony Casiaa available for iutenriews, declarations and 

testimony for purposes of the matters described in this provision. 

18. AAer the Effective Date, tbe MGC shall inform the Presiding Official that the partits 

have entd a settlement agreement and shall request a stay of dl proceedings in the 

appeal pending notification that the NIGC has received the civil fie payment of $50,000 

referenced in Section Thirteen (13) of this Agreement. The Tribe and the TTGC shall 

consent to the notice and motion for stay referenced herein, and the NIGC may represent 

that the Tribe and the TTGC have given such consent Mer the NIGC has received the 
fme payment, it shall -transmit a copy of the Settlement Agreement to the Presiding 

Official and shall request that the Presiding OEcial certify the Settlement Agreement and 

dismiss the administrative appeal. The Tribe and the TTGC consent to the motion to 

certify the Sdernart Agreement and the NIGC may represent that such consent is given. 

19. The parties agree that the Presiding Official's certification of the Settlement Agreement 

shall constitute dismissal of the appeal and final agency action pursuant to 25 C.F.R 5 

584.1O(d). 

The Chahvomafl agrees that, upon execution of this Agreement, the NIGC shall not 

institute further prodings or actions or assess any additional mctiom against the 

Tribe, the TTGC or any other entity of the Tribe, or the officers andor directors of such 

tribal entities, including the members of the Business Committee, the members of the 

Gaming Commission, Town King George Scott and 'PTGC Chairman Man Scott, for 

actions or omissions arising out of, or related to, the subject Matter of NOV 12-1 and 

occurring prior to the Effective Date; provided that, if the Tribe, the TTGC ador any 

other tribal entity fails to comply with any term or condition of this Agreement, including 

if any employees or officials of the Tribe, the TTGC, or the Golden Pony Casino testify 

or otherwise provide idiirmation or evidence in the administrative appeal of NOV-12 

involving TitadMercwy, Anthony DeMdo, Jr., Michael GavenchaIr, Duug Pattison, 

or Lino Vazquez or any other dated federal litigation against TitmMercury, Anthony 

DeMho, Js., Michael Gavenchak, Doug Pattison, and Lho Vazquez that conflicts with 

the representations and admissions made ia declarations or in testimony provided by the 

Tribe or set forth in this Agreement, then, in addition to the possibility that the NlGC 

may pursue perjury charges, (See 18 U.S.C. $1001) the Tribe and the TTGC agree that 

the suspended portion of the civil fine imposed in Section Tbrkm (13) of this 

Agreement shall become fully due and payable on the date of the breach of this 

Agreement. In such circumstance, the NIGC shd issue a written notice to the Tribe. The 

Tribe agrees that it waives any rights to an oral heating under 25 C.F.R $ 5 13.6. The 

NJGC sMl provide the Tribe with a reasonable opportunity to submit written materid 

supporting a request to reconsider the determination that the Tribe is in breach of the 

Agreement. 

21. In the event that the Commission should issue a final order concluding that 

TitadMercury have violated my provision of the 1GM relative to management of the 

Gaming Facility during September 6,2005 through December 3 1,201 0, the Chairwoman 

agrees to assist the Tribe's recovery of any funds or property that TitadMercury may 

have unlawfully or improperly obtained hm the Tribe by providing the Tribe any 

docmieats which lawfully may be conveyed to the Tribe or by any other action that is 

la&. 

ADDITIONAL COVENANTS 

22. This Agreement constitutes tfie en& agreement between the MGC C'hairwoman, the 

Tribe and the TTGC relating to the enforcement action set forth above, and supersedes dl 

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 must be in writing and signed by aIE the parties, 

23. The Tribe and the TTGC agree that this Agreement shall be deemed to be the subject of a 

find order of the NIGC mder 25 C.F.R. 5 575,4(c)(l) and a hid agency action pursuant 

to 25 C.F.R. 8 584.10(d). 

24. The NIGC Chairwoman, the Tribe and the TTGC expressly agree and acknow1edge 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. 

25. The parties agree that, after the Effdve Date, this Agreement shall be a public 

document and may be published or disclosed by either party. 

26. This Agreement my be executed on One or more counterparts md each shall. constitute 

an origml. A signature produced by facsimile shall be deemed to be an original 

signature and shdl be effective and binding for purpose of the Agreement. 

For the ThlopthImo Tribal Town 

3 

By: Date: c3, 7-f3 

Town King, ThEopthl~~co Tribal Town 

For the TMopthlocw Gaming Commission 

By: Date: /'~7-/3 

Alan Scott 

Tribal Gaming Commission Chairman, 

ThIopthEocco Tribal Town 

For the National Indian Gaming Commission: 

By: Date: 

Tracie L. Stevens, Chairwoman 

National Indian Gaming Commission 
binding upon any party except as set forth herein, Any modification or waives of any 

term of this Agreement must be in writing and signed by all the parties. 

23. The Tribe and the TTGC agree that this Agreement shall be deemed to be the subject of a 

final order of the NIGC under 25 C.F.R. tj 575.4(c)(E) and a final agency action pursuant 

to 25 C.F.R. 8 584.10(d). 

24. The NIGC Chairwoman, the Tribe and the TTGC 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. 

25. The parties agree that, after the Effective Date, this Agreement shall be a public 

document and may be published or disclosed by either party. 

26. 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. 

For the Thlopthlocco Tribal Town 

By: Date: 

George Scott 

Town King, Thlopthlocco Tribal Tom 

For the Thlopthlocco Gaming Commission 

By: Date: 

Alan Scott 

Tribal Gaming Commission Chairman, 

Thlopthlocca Tribal Town 

For the National Indian Gaming Commission: 

By: Date: 3/20 //3 

Tracie L. Stevens, Chairwoman 

NationaI Indian Gaming Commission