and any other matters necessary to carry out the duties of the Tribal Gaming
Commission pursuant to the purposes, policies, and provisions of this Ordinance;

(13) Use such Tribal buildings and other Tribal property in the performance of
its duties as shall be approved by the Pawnee Business Council or the Tribal
agency having jurisdiction or use of said buildings or other property;

(14) Procure supplies, services, and property by contract in accordance with
applicable Tribal laws and regulations;

(15) Enter into contracts with federal or other Tribal governments or their
subdivisions and private entities for activities necessary to the discharge of the
duties of the Tribal Gaming Commission, and, to the extent feasible, contract with
the National Indian Gaming Commission for the responsibility to enforce the
regulations of the National Indian Gaming Commission;

(16) Hold such hearings, sit and act at such times and places, take such
testimony, and receive such evidence as the Tribal Gaming Commission deems
appropriate to fulfill its duties and responsibilities pursuant to this Ordinance;

(17) Administer or cause to be administered oaths or affirmations to witnesses
appearing before the Tribal Gaming Commission;

(18) Order the temporary or permanent closing of a Gaming Operation or
Gaming Facility upon a violation of this Ordinance, any regulations promulgated
hereunder, any Management Contract, the Act and its associated regulations, or
other applicable laws of the Tribe, with any such order for permanent closure
being appealable to the Tribal Court;

(19) By majority vote, authorize the Chairman of the Tribal Gaming
Commission to issue, or cause to be issued, subpoenas, which subpoenas shall
be of like effect as issued by the Tribal Court;

(20) Promulgate such regulations and guidelines as it deems appropriate to
implement the provisions of this Ordinance, and to provide for its own rules of
procedure, provided that all such rules and regulations shall be filed with the
Tribal Secretary and shall be public records open to inspection by any person
during normal business hours;

(21) Conduct or cause to be conducted the annual audit of all Gaming
Operations required by 2.6 of this Title, and to report the results to the Pawnee
Business Council and the National Indian Gaming Commission;

(22) Approve, issue, disapprove, suspend, cancel, or renew licenses as
provided in this Ordinance;

(23) Collect fees and assessments as provided for in this Ordinance;

(24) Levy and collect civil penalties and fines as provided for in this Ordinance;

(25) Review, on demand, such books and records and inspect the Gaming

Facilities and operations of applicants and licensees as it deems necessary or
proper for the enforcement of this Ordinance;

03.23.2006 DRAFT 18


Section 10.4Inspection by Tribal Gaming Commission

(1) General Requirement. All books and records of each Gaming Operation relating to
licensed gaming activities shall be subject to inspection, examination, photocopy,
and auditing by the Tribal Gaming Commission or a person designated by the Tribal
Gaming Commission at any time during reasonable hours.

(2) Assured Access. In compliance with 25 C.F.R. § 571.5 or §571.6 or of a Tribal
Ordinance or resolution approved by the Chairman of the National Indian Gaming
Commission, a Gaming Operation shall not refuse to allow an authorized
representative of the National Indian Gaming Commission or an authorized Tribal
Gaming Commission official to enter or inspect a Gaming Operation.

Section 10.5 Insurance Policies

A copy of the required insurance policies covering each Gaming Operation or any part
thereof shall be filed with the Tribal Gaming Commission.

ARTICLE XI

VIOLATIONS
Section 11.1 General
Each Gaming Facility licensed under this Ordinance shall be constructed, maintained,
and operated in a manner which adequately protects the environment and the public
health and safety.
Section 11.2 Gaming License
No person shall operate or conduct any Gaming activity in a Gaming Operation within
Tribal Lands without a gaming license issued by the Tribal Gaming Commission, as
required by this Ordinance. Failure to have a gaming license will not be a valid defense.

Section 11.3 Falsifying Information

No licensee or license applicant shall provide false information in connection with any
document or proceeding required or provided for under this Ordinance.

Section 11.4 Age Limit
No person under the age of eighteen (18) years shall be permitted to participate in any

Gaming activity or any person under the age of twenty one (21) if alcoholic beverages
are served.

03.23.2006 DRAFT 39


Section 7.4 No Class Ill Gaming License

Until authorized by a Tribal-State Compact, no gaming license shall be issued for
any Class III gaming.

Section 7.5 License Suspension

(1) Grounds for Revocation. If, after the issuance of a gaming license, the Tribal
Gaming Commission receives from the National Indian Gaming Commission, or any
other source, reliable information indicating that a Primary Management Official or
Key Employee of a Gaming Enterprise is not eligible for employment, the Tribal
Gaming Commission shall suspend such license and shall notify in writing the
license of the suspension and the proposed revocation.

(2) Notice and Hearing. The Tribal Gaming Commission shall notify the licensee of a
time and place for a hearing on the proposed revocation of a license.

(3) Notification to National Indian Gaming Commission. After a revocation hearing, the
Tribal Gaming Commission shall decide to revoke or to reinstate a gaming license.
The Tribal Gaming Commission shall notify the National Indian Gaming Commission
of its decision.

Section 7.6 License Renewals

(1) Procedure. Every license shall be renewable upon request in such form as the
Tribal Gaming Commission shall, by regulation, determine, provided that the renewal
request shall specifically identify any changes in the renewal applicant's original
license application or renewal license application, as the case may be, since the
issuance of the license being renewed.

(2) Renewal Fee. The renewal applicant shall pay a license renewal fee established by
the Tribal Gaming Commission.

(3) Expiration. Each renewed gaming license shall be valid for a term of (2) year
commencing from the date the license renewal is issued.

Section 7.7 No Property Rights in Licenses

No applicant for or holder of a license shall be deemed to have acquired any property
right in any license required hereunder for gaming operations. All such licenses are
intended solely for purposes of the Tribe exercising its required regulation of Gaming
activities. The decision to issue, refuse to issue, suspend, or revoke a license is solely a
matter of the exercise of the Tribe’s regulatory authority and within the discretion of the
Tribal Gaming Commission, subject to the applicable notice and hearing provisions
specifically provided for herein.

03.23.2006 DRAFT 35


applications of the Ordinance which can be given effect without the invalid provisions of
application, and, to this end, the provisions of this Ordinance are severable.
ARTICLE XVII
DISPUTES BETWEEN MANAGER AND PATRONS

Section 17.1 Improper Conduct by Customers

(1) Notice. Notice of warning regarding the improper conduct set out in gaming rules
established and enforced by the Gaming Operation shall be posted at the entrance
of the Gaming Facility and/or given to patrons upon entering the premises.

(2) Types of Improper Conduct. The following improper conduct shall result in ejection
of a Patron from any Gaming Facility and the Pawnee Tribal Reserve:

(a) Cheating;

(b) Possession of weapons in the Gaming Facility;

(c) Illegal possession of alcohol in the Gaming Facility;

(d) Illegal possession of a controlled substance in the Gaming Facility;

(e) Disorderly conduct, including the willful or wanton disregard for the rights of
others, and any other act which is disruptive to the Gaming Operation and
other Patrons.

(3) Submission of Proof of Age. Failure by a Patron to provide proof of age when
requested by Gaming Operation personnel shall result in ejection of the Patron from
the Gaming Facility.

(4) Ejection

(a) Ejection of a Patron shall be accomplished by security personnel, upon
request of management personnel of the Gaming Facility

(b) Ejection of a Patron for any reasons so stated in of subsections (2) and (3) of
this Section 17.1 shall result in the gaming activity entry or admission fee not
being refunded.

Section 17.2 Resolving Disputes Between Patrons and Tribe or Management Officials

A designated representative of management shall be present at all times to resolve
complaints by Patrons involving the Gaming Operation. Disputes between Patrons and
Gaming Management shall be resolved in the following manner:

(1) If Management is unable to resolve any dispute, the matter may, upon request of
the complaining Patron, be referred to the Tribal Gaming Commission for
resolution in a regular or special meeting.

(2) If the dispute is not settled after a decision has been rendered by the Tribal
Gaming Commission, then the parties may file for a hearing in Tribal Court.

03.23.2006 DRAFT 44


(35) “TRIBAL GAMING COMMISSION” means the Pawnee Tribal Gaming
Commission created under Article III hereof.

(37) “TRIBAL GAMING OPERATION” means a Gaming Operation owned, operated,
and managed solely by the Tribe through its own employees.

(38 )“TRIBAL LANDS” means: (a) all land within the limits of the boundaries of the
Pawnee Indian Reservation; or (b) land over which the Pawnee Nation exercises
governmental power and that is either — (1) held in trust by the United States for the
benefit of the Pawnee Nation or individual Tribal members; or (2) held by the Pawnee
Nation or individual Tribal member subject to restriction by the United States against
alienation.

(39) “TRIBAL PROSECUTOR” means any attorney regularly employed as an
employee of the Tribe or other special counsel retained by the Tribe as a law
enforcement official.

(40) “TRIBAL-STATE COMPACT” means an agreement between the Tribe and any
state which regulates Class II| Gaming pursuant to 25 U.S.C. § 2710(d).

(41) “TRIBAL TREASURER” means the Tribal Treasurer as described in the
Constitution of the Pawnee Nation of Oklahoma.

(42) “TRIBE” means the Pawnee Nation of Oklahoma.

ARTICLE II
GENERAL PROVISIONS

Section 2.1 Gaming Authorized

Class || Gaming as defined at § 2703(7)(A) and Class Ill Gaming as defined at
§ 2703(8) of the Indian Gaming Regulatory Act and by the regulations promulgated by
the National Indian Gaming Commission at 25 C.F.R. §§ 502.3 and 502.4 are hereby
authorized in accordance with the provisions of this Ordinance.

Section 2.2 Class Il Licensing

The following Class Il Games may be licensed and conducted on Tribal Lands:

(1) Bingo as defined under this Act (whether or not electronic, computer, or other
technologic aids are used in connection therewith) including, if played at the
same location, pull-tabs, lotto, punch boards, tip jars, instant bingo, and other
games similar to bingo.

(2) Any game defined as Class II Gaming as defined by the Act and otherwise
determined to be Class II Gaming by amendment of the Act, by regulation, by
decision of the National Indian Gaming Commission, or a federal court.

03.23.2006 DRAFT 12


(1) Authority. The Tribal Gaming Commission shall have the power to require or
cause to be required by subpoena the attendance and testimony of witnesses
and the production of all books, papers, documents, and things relating to any
matter under consideration of investigation.

(2) Enforcement Power. The attendance of witnesses and the production of books,
papers, and documents may be required from any place in the United States at
any designated place of hearing. The Tribal Gaming Commission may request
the National Indian Gaming Commission to bring appropriate action to enforce
any subpoena under this Section.

(3) Failure to Appear or Comply. A Tribal Court, in case of contumacy or refusal to
obey a subpoena for any reason, may issue an order requiring such person to
appear before the Tribal Gaming Commission, and produce books, papers,
documents, or things as so ordered, and give evidence concerning the matter in
question, any failure to obey such order a Tribal Court may be punished by the
Tribal Court as a contempt thereof.

(4) Depositions. The Tribal Gaming Commission may order, or cause to be ordered,
testimony to be taken by deposition in any proceeding or investigation pending
before the Tribal Gaming Commission at any stage of such proceeding or
investigation. Such depositions may be taken before any person designated by
the Tribal Gaming Commission and having the power to administer oaths.
Reasonable notice must first be given to the Tribal Gaming Commission in
writing by the party or his attorney proposing to take such deposition, and, in
cases in which the Tribal Gaming Commission proposes to take a deposition,
reasonable notice must be given. The notice shall state the name of the witness
and the time and place of the taking of his deposition. Any person may be
compelled to appear and depose, and to produce books, papers, documents, or
things in the same manner as witnesses may be compelled to appear and testify
and produce like physical or documentary evidence before the Tribal Gaming
Commission as hereinbefore provided.

(5) Transcription. Every person deposing as herein provided shall be cautioned and
shall be required to swear or affirm to testify to the whole truth, and shall be
carefully examined. The person's testimony shall be reduced to writing where
possibly by the person taking the deposition, or under his direction, and shall,
after it has been reduced to writing, be subscribed by the deponent in the same
manner as depositions in civil cases. All depositions shall be promptly filed with
the Tribal Gaming Commission.

(6) Presumptions. Where any current or proposed Tribal Manager, Management
Contractor or licensee, or a Primary Management Employee, Key Employee, or
other employee or Relative of a potential licensee or current licensee fails or
refuses to comply with a subpoena issued, pursuant to this Section, the Tribal
Gaming Commission may presume that the testimony and evidence which would
have been presented to the Tribal Gaming Commission would be adverse to the
interests of the current or potential license in the matter under investigation and
shall be grounds for immediate suspension or termination.

03.23.2006 DRAFT 22


Section 11.5 Cheating
No person shall engage in any form of Cheating in any Gaming activity.
Section 11.6 Possession of a Firearm

No Person, other than a law enforcement officer or security personnel licensed to carry
a firearm, may enter or remain in a Gaming Facility licensed under this Ordinance while
in the possession of a firearm or other weapon.

Section 11.7 Violation of any Provision, Rule, Regulation, or Order

No person shall violate any provision of this Ordinance, nor any rule, regulation or order
that the Tribal Gaming Commission may adopt or issue, nor any provision of the Act, or
regulation adopted by the Tribal Gaming Commission.

Section 11.8 Accomplice Liability for Violations

Any Person who knowingly and with a common intent aids or assists a Person who
violates any provision of this Ordinance shall be deemed to be in violation of this
Ordinance to the same extent as the violator.

Section 11.9 Management Contractor Compliance with Ordinance

Each Management Contractor shall comply with the applicable provisions of this
Ordinance. Each Management Contractor is also responsible for ensuring that all
Primary Management Officials and Key Employees assisting in Gaming Operations
comply with this Ordinance. A violation by any such officials or employees shall be
deemed a violation by the Management Contractor and shall subject the Management
Contractor to a civil enforcement action.

Section 11.10 Fraudulent Scheme of Technique
No Person, playing in or conducting any gaming activity authorized under this

Ordinance, shall:

(1) use bogus or counterfeit cards or chips, or substitutes, or of use any game cards,
tickets or coupons that have been tampered with;

(2) employ or have on one’s person any cheating device to facilitate cheating in any
gaming activity;

03.23.2006 DRAFT 40


Section 3.12
Section 3.13
Section 3.14
Section 3.15

Judicial Review

Subpoena and Deposition Authority
Referrals for Prosecution
Authorization for Appropriations

Article !V GAMING LICENSE REQUIREMENTS

Section 4.1
Section 4.2
Section 4.3

License for Location
Types of Licenses to be Issued
License Fees

Article V LICENSE APPLICATION PROCEDURE

Section 5.1
Section 5.2
Section 5.3
Section 5.4
Section 5.5
Section 5.6

Application Forms
Submissions with Applications
Notice Features

Payment of Application Fee
Description on Application
Manner of Filing Instruments

Article Vi BACKGROUND INVESTIGATIONS

Section 6.1
Section 6.2
Section 6.3
Section 6.4
Section 6.5
Section 6.6

Section 6.7

Required Background Investigations

Authority to Conduct Background Investigations
Fingerprinting

Investigative Procedures

Eligibility Determination

Procedures for Forwarding Applications and
Background Investigation Reports to the National Indian
Gaming Commission

Report to the National Indian Gaming Commission

Article Vil LICENSE ISSUANCE, RENEWAL, AND SUSPENSION

Section 7.1
Section 7.2
Section 7.3
Section 7.4
Section 7.5
Section 7.6
Section 7.7

General

Validity

Assignment, Transfer, and Display of Gaming Licenses
No Class III Gaming License

License Suspension

License Renewals

No Property Rights in Licenses

Article Vill TRIBAL GAMING

Section 8.1

03.23.2006 DRAFT

Use of Net Revenue


update such information at any time that changes occur in prior submissions so as to
allow complete background investigations.

(3) Notification of Non-Licensing Decision. If a license is not issued to an applicant, the
Tribal Gaming Commission shall:

(a) notify the National Indian Gaming Commission; and

(b) forward copies of its eligibility determination and investigative report, if any, to the
National Indian Gaming Commission for inclusion in the Indian Gaming Individual
Records System.

(4) Record Keeping. With respect to all licensed Primary Management Officials and
Key Employees of the Gaming Enterprise, the Gaming Commission shall retain
applications for employment and reports, if any, of background investigations for
inspection by the Chairman of the National Indian Gaming Commission or his or her
designee for no less than three (3) years from the date of termination of employment.

ARTICLE VII
LICENSE ISSUANCE, RENEWAL, AND SUSPENSION

Section 7.1 General

(1) Notification to National Indian Gaming Commission. Whenever it appears to the
Tribal Gaming Commission that a proposed license would be consistent with the Act,
this Ordinance, and the public interest, it may issue the requested license after thirty
(30) days notice of intent to issue the license to the National Indian Gaming
Chairman, unless during the notice period, the Tribal Gaming Commission is
directed by the National Indian Gaming Commission to delay issuance of the license
for further investigation. It shall be a condition of the license that each applicant, or
proponent thereof, notify the Tribal Gaming Commission in writing within three (3)
business days of any event which would change any of the answers or information
submitted with a license application.

(2) Issuance of License. If, within a thirty (30) day period after the National Indian
Gaming Commission notifies the Tribal Gaming Commission that it has no objection
to the issuance of a license pursuant to a license application filed by a Primary
Management Official or Key Employee of a Gaming Enterprise for whom the Tribal
Gaming Commission has provided an application and investigative report to the
National Indian Gaming Commission, the Tribal Gaming Commission may issue a
license to such applicant.

(3) Providing Additional Information. The Tribal Gaming Commission shall respond to a
request for additional information from the Chairman of the National Indian Gaming
Commission concerning a Primary Management Official or Key Employee of a
Gaming Enterprise who is the subject of a report. Such a report shall suspend a
thirty (30) day period under Section 7.1(1) until the National Indian Gaming
Chairman receives the additional information.

03.23.2006 DRAFT 33


(26) Prepare such forms as it deems necessary to fulfill its duties,
responsibilities, and powers hereunder;

(27) Institute such legal proceedings in federal, state, or Tribal Court as the
Commission deems necessary for the enforcement of this Ordinance and
regulations promulgated pursuant thereto;

(28) Conduct hearings as provided in this Ordinance and regulations
promulgated hereunder;

(29) Deposit all payments, fees, assessments, penalties, interest, and civil
fines collected under authority of this Ordinance into accounts designated by the
Tribal Gaming Commission to the credit of the Tribe;

(30) Maintain a correct and full accounting of all payments, fees, penalties,
interest, and civil fines received under authority of this Ordinance; and

(31) Take such other actions and issue such orders as the Tribal Gaming
Commission may deem necessary or proper to perform properly and fully its
duties and responsibilities under this Ordinance.

Section 3.8 Reports

The Tribal Gaming Commission shall submit a report, including the views of individual
members, if submitted, to the Council on a quarterly basis each calendar year. The
report shall include information concerning:

(1) funding, including income and expenses, of the Tribal Gaming Commission;

(2) Net Revenue and Adjusted Gross Revenues received by the Tribe from Gaming
Operation;

(3) Recommendations for amendments to this Ordinance;

(4) A summary of gaming licenses issued and denied, by type, during the preceding
quarterly reporting period; and

(5) Any other matter considered appropriate to report by the Tribal Gaming
Commission.

Section 3.9 Staffing of Tribal Gaming Commission

(1) General Counsel. The Tribal Gaming Commission shall designate a licensed
attorney to act as General Counsel to the Tribal Gaming Commission

(2) Other Staff. The Tribal Gaming Commission may appoint and supervise other
staff for the Tribal Gaming Commission in accordance with the personnel policies
and procedures of the Gaming Commission, at such rates of pay as shall be
reflected in the budget of the Tribal Gaming Commission as approved by the
Council, provided that no Person may be appointed to the staff of the Tribal
Gaming Commission who is a relative of a member of the Tribal Gaming

03.23.2006 DRAFT 19


Article V
License Application Procedure

Section 5.1 Application Forms

(1) Each Person having a Management Contract, each Primary Management Official
and each Key Employee shall complete any application for an initial license or
renewal of an existing gaming license on an application form prescribed by the Tribal
Gaming Commission. Each gaming license or renewal license shall be valid for a
term of two (2) years period commencing from the date the license is issued. The
application shall set forth:

(a) the name under which the applicant transacts or intends to transact
business on Tribal Lands;

(b) the location of the Gaming Facility for which the gaming license is sought;
and

(c) the application shall be signed by the applicant if a natural person, or, in
the case of an association or partnership, by a member or partner thereof,
or in the case of a limited liability company, by a manager thereof, or in the
case of a corporation, by an executive officer thereof. The applicant shall
provide evidence of authority of the signatory or any other representative
to act for and bind the applicant. If any change is made in that authority,
the Tribal Gaming Commission shall be immediately informed in writing
and, until that information is filed with the Tribal Gaming Commission, any
action of the representative shall be presumed to be that of the applicant.

Section 5.2 Submissions with Applications

(1) Minimum Requirements for Natural Persons. All individuals to be licensed in any
capacity shall submit at a minimum:

(a) a complete personal resume, on a form to be developed by the Tribal Gaming
Commission;

(b) a statement whether the applicant is a member, or a Relative of a member, of the
governing body of the Tribe, any other constitutional or statutory agency or body
of the Tribe, or an employee of the Tribe;

(c) whether the individual has been convicted of any felony, gaming offense, or
offense involving moral turpitude;

(d) all prior experience or contact with Indian gaming enterprises in any capacity,
and the gaming industry generally, including specifically the name, address, and
telephone number of any regulatory or licensing agency having jurisdiction over
or records of such prior actions;

(e) any previous contact the applicant has had with persons involved in organized
crime; and

03.23.2006 DRAFT 25


Section 3.12 Judicial Review

(1) Scope and Procedure. The decisions of the Tribal Gaming Commission denying,
suspending, or revoking a license, or ordering permanent closure of a Gaming
Operation or Gaming, shall be subject to judicial review in the Tribal Court only,
naming the Tribal Gaming Commission as the sole defendant to the extent that
the suit seeks prospective injunctive relief and does not claim monetary damages
of any kind. The Tribal Court may enter declaratory and injunctive relief only
against the Tribal Gaming Commission and may not enter a money damage
judgment of any nature, PROVIDED, that the limited waiver of immunity herein
contained is conditioned upon the plaintiff in such action posting a bond with
good and sufficient sureties in an amount that shall be determined by the Court
as deemed necessary for cause shown, for the payment of the attorney's fees
and court costs incurred by the Tribal Gaming Commission, which costs and fees
shall be awarded by the Tribal Court as a part of any judgment or decree; and
PROVIDED FURTHER, that no temporary restraining order may be issued under
any circumstances and no preliminary injunction may be issued in favor of such
plaintiff absent a noticed hearing wherein the plaintiff presents substantial and
credible evidence that:

(a) the plaintiff is likely to prevail upon the law and facts, and the evidence in
favor of plaintiff is clear and convincing;

(b) that the public health, welfare, and safety will not be harmed by such
temporary relief;

(c) that the balance of equity is strongly in favor of such plaintiff;

(d) the plaintiff will suffer irreparable harm absent such temporary relief other
than simply economic loss; and

(e) at least forty-eight (48) hours notice is given to the legal counsel appointed
by the Tribal Gaming Commission and the Secretary of the Commission.

(2) Immunity. The individual members of the Tribal Gaming Commission shall be
absolutely immune from civil suit in all actions at law or in equity for any actions
taken or statements made within the scope of their authority as members of the
Tribal Gaming Commission, or in a good faith belief that their actions or
statements were within the scope of their authority. The Pawnee Nation of
Oklahoma may defend and indemnify the individual members against any civil
suit even if the civil suit alleges actions outside the scope of authority;
PROVIDED, however, that if a final judgment determines that actions were, in
fact, outside the scope of authority, with no good faith belief that they were
otherwise, then the costs of defense may be determined by the Tribal Court.

Section 3.13 Subpoena and Deposition Authority

03.23.2006 DRAFT 21


(4) Objections by National Indian Gaming Commission. If, within the thirty (30) day
period described above, the National Indian Gaming Commission provides the Tribal
Gaming Commission with a statement itemizing objections to the issuance of a
license to a Primary Management Official or Key Employee of a Gaming Enterprise
for whom the Tribal Gaming Commission has provided an application and
investigative report to the National Indian Gaming Commission, the Tribal Gaming
Commission shall reconsider the application taking into account the objections
itemized by the National Indian Gaming Commission. The Tribal Gaming
Commission shall make the final decision whether to issue a license to such
applicant.

(5) Ineligible Persons. The Tribal Gaming Commission may issue or renew a gaming
license to an applicant who submits a proper and completed application and pays
the appropriate annual fee, provided that no license shall be issued to or renewed
for an applicant:

(a) who is a member of the Pawnee Business Council;
(b) who is not a person of good character, honesty, and integrity;

(c) has knowingly and willfully provided materially false statements or information to
the Tribal Gaming Commission pursuant to the Act or this Ordinance, or has
refused to respond to a subpoena issued pursuant to this Ordinance;

(d) who is not found by the Tribal Gaming Commission to be eligible for employment
under the criteria of Section 6.3;

(e) who has had or who is business with or otherwise closely associated with anyone
who has had a gaming license revoked for cause in any jurisdiction;

(f) who is delinquent in the payment of any obligation owed to the Tribe, the Tribal
Gaming Commission pursuant to this Ordinance, any regulations that the Tribal
Gaming Commission has or may adopt, or a Management Contract; or

(g) who has failed to comply with the Act, regulations of the National Indian Gaming
Commission, this Ordinance, or any regulation that the Tribal Gaming
Commission has or may adopt.

Section 7.2 Validity

Each License shall be valid for a term of two (2) years commencing from the date
the license is issued. Each renewed License for all gaming employees including
management officials Subject to the provisions of the Pawnee Tribe of Oklahoma
and State of Oklahoma Gaming Compact shall be licensed in accordance with Part
10 of the Compact.

Section 7.3 Assignment, Transfer, and Display of Gaming Licenses
A gaming license may not be assigned or transferred and is valid only for use by the

Person in which it is issued. A gaming license shall be conspicuously displayed at all
times at the Gaming Facility for which it is issued.

03.23.2006 DRAFT 34


Section 3.3 Voting

The Tribal Gaming Commission shall act by majority vote of the Commissioners present
at a meeting called and reasonable notice given to each Commissioner; provided, three
(3) Commissioners shall constitute a quorum to transact business. Each member of the
Tribal Gaming Commission shall be entitled to one vote. Chairman/Chairperson shall
vote only in the event of a tie.

(1) Any action required or permitted to be taken at a meeting of the Commission may
be taken without meeting if all members sign written consents setting forth the
action taken or to be taken, at anytime before or after the intended effective date
of such action. Such consents shall be filed with the minutes of the Commission
and shall have the same effect as a unanimous vote or resolution of the
Commission at a legal meeting thereof. Any such action taken by unanimous
written consents may, but need not be, set forth in such consents in the form of
resolutions or votes.

(2) Members of the Commission may participate in a meeting of the Commission by
means of conference telephone or similar communications equipment by means
of which all persons participating in the meeting can hear each other, and
participation in a meeting in such matter by any member who does not object at
the beginning of such meeting to the holding thereof in such manner shall
constitute presence of the member at the meeting.

Section 3.4 Appointment of Members

The Tribal Gaming Commission shall be appointed by the Pawnee Business Council,
and shall consist of five (5) commissioners. No member of the Tribal Gaming
Commission shall be younger than twenty-five (25) years of age at the time of
appointment. No member of the Pawnee Business Council may serve on the Tribal
Gaming Commission during the Council member's term of office.

Section 3.5 Terms of Office

The term of office for each Commissioner shall be a period of three (3) years.

Section 3.6 Appointment of Officers

The Chairman, Vice-Chairman, and Secretary/Treasurer of the Tribal Gaming
Commission will be appointed by the Tribal Gaming Commissioners. The Chairman
shall be the official spokesperson for the Tribal Gaming Commission and may delegate
this role only by written instrument. In the absence of the Chairman, the Vice-Chairman
will serve as Chairman. The Tribal Gaming Commission may also elect such other
officers as the Commission deems appropriate.

Section 3.7 Authority and Responsibility of Tribal Gaming Commission

03.23.2006 DRAFT 16


Section 1.3 General Prohibition - Exceptions

No person shall conduct any game of Bingo or any other Class || Gaming or any Class
Ul Gaming within Tribal Lands for which a charge is made or other consideration
requested or required for participation, or to the winner of which any prize is awarded
except as licensed pursuant to this Ordinance.

Section 1.4 Definitions

As used in this Ordinance, the following definitions shall apply:

(1) “ACT” means the Indian Gaming Regulatory Act, 102 Stat. 2467, codified
at 25 U.S.C. §§ 2701-2721, as amended.
(2) “ACCOMPLICE” means one who acts jointly with another or as an

accessory before the fact to an act committed by the other or as a co-conspirator
with the other.

(3) “ADJUSTED GROSS REVENUES” means gross revenues less all cash
prizes or the aggregate price of merchandise prizes paid out.

(4) “BINGO” means a game of chance (whether or not electronic, computer,
or other technologic aids are used in connection therewith):

(a) which is played for prizes, including monetary prizes, with cards bearing
numbers or other designations,

(b) in which the holder of the card covers such numbers or designations when
objects, similarly numbered or designated, are drawn or electronically
determined, and

(c) in which the game is won by the first person covering a previously
designated arrangement of numbers or designations on such cards,
including (if played in the same location) pull-tabs, lotto, punch boards, tip
jars, instant bingo, and other games similar to bingo.

(5) “CHEATING” means operating or playing in a game in a manner in
violation of the written or commonly understood rules of the game with the intent
to create for oneself, directly or through any accomplice, an advantage over and
above the chance of the game.

(6) “CLASS I! GAMING” means that gaming defined in 25 U.S.C. §2703(7)(A)
and 25 CFR 502.3.

(7) “CLASS II| GAMING” means that gaming defined in 25 U.S.C. §2703(8)
and 25 CFR 502.4.

(8) “COMPACT” means the Tribal Gaming Compact between the Pawnee
Tribe of Oklahoma and the State of Oklahoma, which is also known as the
Pawnee Tribe of Oklahoma and State of Oklahoma Gaming Compact.

(9) “CONCESSIONS” means all drinks and food sold at the Gaming Facility.

03.23.2006 DRAFT 8


(h) for each felony for which there is an ongoing prosecution or a conviction, the
charge, the name and address of the court involved, the date, and disposition, if
any;

(i) for each misdemeanor conviction or misdemeanor prosecution (excluding minor
traffic violations) within ten (10) years of the date of the application, the name
and address of the court involved, the date, and disposition;

(j) for each criminal charge (excluding minor traffic charges) whether or not there is
a conviction, if such criminal charge is within ten (10) years of the date of the
application and is not otherwise listed pursuant to Paragraphs (h) or (i) of this
Section, the criminal charge, the name and address of the court involved, the
date, and disposition;

(k) the name and address of any licensing or regulatory agency with which the
applicant has filed an application for an occupational license or permit, whether
or not such license or permit was granted;

(l) a current photograph;

(m)fingerprints consistent with procedures adopted by the Tribal Gaming
Commission according to 25 C.F.R. § 522.2(h), and

(n) any other information the Tribal Gaming Commission deems relevant.

(2) Inquire into the applicant's prior activities, criminal record, if any, and reputation,
habits and association; interview a sufficient number of knowledgeable people such
as former and current employers, business associates, personal references, and
others to whom referred in order to provide a basis for the Tribal Gaming
Commission to make a finding concerning the eligibility for employment in a gaming
operation.

(3) Inquire into state and local law enforcement agencies, business registration and
licensing agencies, and taxing authorities for purposes of conducting inquiry and
investigation of the truthfulness and accuracy of all information required for each
applicant.

(4) Submit detailed written reports to the Tribal Gaming Commission disclosing the
results of the background inquiry, designating areas of inquiry for which incomplete
information exists following diligent efforts customary for the subject matter of the
particular inquiry, and the disposition of all potential problem areas noted and
disqualifying information obtained.

Section 6.5 Eligibility Determination

(1) Review. The Tribal Gaming Commission shall promptly review all investigative
reports concerning an applicant at a meeting specifically called for such purpose and
as the sole agenda item.

(2) Criteria. The Tribal Gaming Commission shall ensure that any Person involved with
the conduct of gaming activities is a person of good character, honesty, and
integrity.

03.23.2006 DRAFT 31


Section 5.3 Notice Features

(1) Privacy Act Notice. The following notice shall be placed on the application form of a
Key Employee or a Primary Management Official before that form is filled out by an
applicant:

“In compliance with the Privacy Act of 1974, the following information is
provided: Solicitation of the information on this form is authorized by 25
U.S.C. § 2701 et seq. The purpose of the requested information is to
determine the eligibility of individuals to be employed in a gaming
operation. The information will be used by National Indian Gaming
Commission members and staff who have need for the information in the
performance of their official duties. The information may be disclosed to
appropriate Federal, Tribal, State, Local, or foreign law enforcement and
regulatory agencies when relevant or civil, criminal or regulatory
investigations or prosecutions or when pursuant to a requirement by a
tribe or the National Indian Gaming Commission in connection with the
hiring or firing of an employee, the issuance or revocation of a gaming
license, or investigations of activities while associated with a tribe or a
gaming operation. Failure to consent to the disclosures indicated in this
notice will result in a tribe being unable to hire you in a primary
management official or key employee position.”

The disclosure of your Social Security Number (SSN) is voluntary.
However, failure to supply a SSN may result in errors in processing your
application”.

(2) Existing Key Employees and Primary Management Officials, if any shall be notified
in writing that they shall either:

(a) complete a new application form that contains a Privacy Act notice; or

(b) sign a statement that contains the Privacy Act notice and consent to the routine
uses described in that notice.

(3) Notice of Consequences of False Statement. The following notice shall be placed
on the application for a Key Employee or Primary Management Official before that
form is filled out by an applicant:

“A false statement on any part of your application may be grounds for not
hiring you, or firing you after you begin work. Also you may be punished
by fine or imprisonment. (U.S. Code, Title 18, Section 1001).”

The Tribal Gaming Commission shall notify existing Key Employees and Primary
Management Officials, if any, that they shall either:

(a) complete a new application form that contains a notice regarding false
statements; or

03.23.2006 DRAFT 28


Article IX | NON-PROFIT GAMING

Section 9.1 License of Certain Non-Profit Organizations
Section 9.2 Licensing Procedure

ArticleX | RECORDS AND REPORTS

Section 10.1 Record Retention and Maintenance

Section 10.2 Statement of Gross Gaming Receipts and Net Revenues
Section 10.3 Falsification of Books and Records

Section 10.4 Inspection by Tribal Gaming Commission

Section 10.5 Insurance Policies

Article Xl VIOLATIONS

Section 11.1 General

Section 11.2 Gaming License

Section 11.3 Falsifying Information

Section 11.4 Age Limit

Section 11.5 Cheating

Section 11.6 Possession of a Firearm

Section 11.7 Violation of any Provision, Rule, Regulation, or Order
Section 11.8 Accomplice Liability for Violations

Section 11.9 Management Contractor Compliance with Ordinance
Section 11.10 Fraudulent Scheme of Technique

Article Xll_ CIVIL ENFORCEMENT

Section 12.1 Action to be Taken
Section 12.2 Jurisdiction
Section 12.3 Notification
Section 12.4 Acknowledgement

Article XII! HEARINGS AND APPEALS

Section 13.1 Petition for Payment of Penalty
Section 13.2 Petition for Hearing and Reconsideration

Article XIV. APPLICABLE LAW

Section 14.1 Controversies Involving Contract

03.23.2006 DRAFT 5


Section 8.2
Section 8.3
Section 8.4
Section 8.5
Section 8.6
Section 8.7
Section 8.8

03.23.2006 DRAFT

Regulations of Tribal Subdivision

Duties of the Designated Business Entity
Location of Gaming Sessions

Report of Winners

Report of Receipts and Disbursements
Verification of Report

No Tribal Liability


The Tribal Gaming Commission shall have the power, authority, and responsibility to:

(1) Collect all funds, including but not limited to application fees, license fees,
fines, penalties, and guaranteed monthly payments due to the Tribe from any
Gaming Operation on Tribal Lands in accordance with the relevant provisions of
this Ordinance;

(2) Request by requisition to the Pawnee Business Council the disbursement
of payroll, expenses, and any and all other funds with such requisitions requiring
the signature of the Chairman and/or the Secretary/Treasurer and made
thereafter by the Pawnee Business Council;

(3) Issue and renew gaming licenses for the conduct of Class Il Gaming and
Class Ill Gaming activity on Tribal Lands;

(4) Issue and renew gaming licenses for the conduct of Class Il Gaming and
Class Ill Gaming activity on Tribal Lands upon such terms and conditions which
may be provided for in a Tribal-State Compact or otherwise authorized by federal
law;

(5) Enforce and administer the provisions of this Ordinance and any
regulations promulgated by the Tribal Gaming Commission;

(6) Revoke, suspend, or condition a gaming license, or deny an application
for a gaming license for violations of this Ordinance, the Act, regulations
promulgated by the National Indian Gaming Commission, and regulations
promulgated by the Tribal Gaming Commission;

(7) Promulgate regulations regarding Class || Gaming and Class !I1 Gaming
on Tribal Lands;

(8) Review Management Contracts for specific Gaming Operations and report
any and all findings to the Pawnee Business Council;

(9) Monitor all Gaming conducted on Tribal Lands and oversee the conduct of
the management and employees of Gaming Operations on a continuing basis;

(10) Inspect and examine all Gaming Sites and Gaming Facilities on Tribal
Lands at such times as the Tribal Gaming Commission or the Pawnee Business
Council may deem proper to determine and verify compliance with this
Ordinance and any Management Contract;

(11) Conduct, or cause to be conducted, such background investigations as
may be necessary and advisable or required by this Ordinance, the Act or federal
gaming regulations; and, in particular, the Commission may conduct thorough
checks of the background and suitability of Gaming Commissioners, Key Tribal
Gaming Commission Employees, Management Contractors, and Primary
Management Officials and Key Employees of any Gaming Enterprise;

(12) Demand access to and inspect, examine, photocopy, and audit all papers,
books, and records respecting of Gross Gaming Receipts, Operating Expenses
and Revenues, and operations of Gaming Operations conducted on Tribal lands

03.23.2006 DRAFT 17


THE PAWNEE NATION OF OKLAHOMA
GAMING ORDINANCE

An Ordinance to authorize, license, regulate Class II and Class Il gaming on
Tribal Lands of the Pawnee Nation of Oklahoma.

ARTICLE |
INTRODUCTION

Section 1.1 Declaration of Policy

It is the declared policy of the Pawnee Nation of Oklahoma that:

(1) All gaming conducted on Tribal Lands of the Pawnee Nation shall be regulated
by the Pawnee Nation Gaming Commission to protect the public health and
welfare of employees and patrons from the adverse effects which may derive
from unregulated gaming;

(2) It is the objective of the Tribe to achieve and sustain the maximum Tribal revenue
from gaming for the benefit of the Tribal government and membership and to
promote Tribal economic self-sufficiency and the general Tribal health and
welfare;

(3) The conduct of activities provided for by this Ordinance on Tribal Lands shall
conform with the Indian Gaming Regulatory Act, 102 Stat. 2467, 25 U.S.C. §§
2701-2721, and the regulations promulgated by the National Indian Gaming
Commission;

(4) Furthermore it shall be recognized that effective regulatory oversight requires a
functional separation between the operation of Tribal gaming and the regulation
of Tribal gaming; and

(5) Accordingly it is believed that the Gaming Commission shall have sufficient
freedom and flexibility without undue interference and shall have a stable source
of funding.

Section 1.2 Scope

This Ordinance shall apply to all Gaming conducted on Tribal Lands as defined herein,
and lands otherwise within the jurisdiction of the Pawnee Nation of Oklahoma, in which
a prize or reward is offered or awarded to any participant or in which a participant is
required or requested to provide any legal consideration in order to participate, whether
in person or through an agent.

03.23.2006 DRAFT 7


Section 3.14 Referrals for Prosecution

The Tribal Gaming Commission shall, when information received during an investigation
indicates a violation of Tribal, Federal, or State statutes, ordinances, or resolutions,
provide such information to the appropriate law enforcement officials. The Tribal
Gaming Commission may from time to time appoint counsel as a special Tribal
Prosecutor for the purposes of investigating activities associated with gaming
authorized by this Ordinance which may be a violation of Tribal Law.

Section 3.15 Authorization for Appropriations

The Pawnee Business Council is hereby authorized to appropriate such sums as may
be necessary for the adequate operation of the Tribal Gaming Commission.

ARTICLE IV
GAMING LICENSE REQUIREMENTS
Section 4.1 License for Location

The Tribal Gaming Commission shall issue a separate license to each place, facility, or
location conducting Class II and/or Class Ill Gaming Operations.

Section 4.2 Types of Licenses to be Issued

(1) Third Party Management. The Tribal Gaming Commission shall issue the
following licenses with respect to Gaming Operations operated by a Management
Contractor under a Management Contract or by an individual operator, and each
license shall be valid for a term of two (2) years commencing from the date the
license is issued:

(a) Gaming Facility License;

(b) Management Contractor's License;
(c) Primary Management Official License;
(d) Gaming Manager License;

(e) Key Employee License; and

(f) General Employee License.

(2) Tribal Management. The Tribal Gaming Commission shall issue the following
licenses with respect to Tribal Gaming Operations owned and operated directly
by the Tribe and each license shall be valid for a term of two (2) years
commencing from the date the license is issued, except General Employee, Key
Employee, and Primary Management Official Licenses shall be reviewed for
renewal purposes no more than two (2) years from date of issuance:

(a) Gaming Facility License;

03.23.2006 DRAFT 23


sONAL 'No,

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"4 es
WE comm”?
MAY ~9 2006

VIA FACSIMILE AND U.S. MAIL

Mr. Randy Ledford
Commission Director
Pawnee Nation of Oklahoma
P.O. Box 514

Pawnee, OK 74058

Fax: (918) 762-6446

RE: Approval of Class I and Class II Tribal Gaming Ordinance
Dear Mr. Ledford:

This letter is in response to your request for the National Indian Gaming Commission
(NIGC) to review and approve the revised Gaming Ordinance for the Pawnee Nation of
Oklahoma enacted pursuant to Resolution on April 12, 2006, and received by the NIGC on
April 12, 2006. This letter constitutes such approval under the Indian Gaming Regulatory
Act (GRA). It is important to note that the Gaming Ordinance is approved for gaming
only on Indian Lands, as defined in the IGRA, over which the Tribe has jurisdiction.

6u for submijfing the ordinance for review and approval. The NIGC staff and I
ing with you and the Apache Tribe of Oklahoma on future gaming

ce: Ronal Rice Sr., President
Pawnee Nation
P.O. Box 470
Pawnee, OK 74058

NATIONAL HEADQUARTERS 1441 L St. NW, Suite 9100, Washington, DC 20005 Tal: 202.632.7003 Fay: 207 627.7066 WWW.NIGC.Gov

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


(x) bingo caller

(xi) custodian of gambling devices including persons with access to
cash and accounting records within such devices;

(b) if not otherwise included, any other person whose total cash compensation is
in excess of $50,000 per year; or

(c) if not otherwise included, the four most highly compensated persons in the
gaming operation.
(19) “LICENSE” means a license issued pursuant to and in accordance with

this Ordinance the National Indian Gaming Regulatory Act and associated
regulations.

(20) “MANAGEMENT CONTRACT’ means any contract or collateral
agreement between the Tribally-designated entity and an outside Management
Contractor, not a regular employee of the Tribe, if such contract or agreement
provides for the development and/or management of all or part of a Gaming
Operation at a specified Gaming Facility.

(21) “MANAGEMENT CONTRACTOR” means the Person (other than the
Tribe) holding a Management Contract entered into pursuant to 25 U.S.C.
§ 2710(d)(9) and 2711.

(22) “NATIONAL GAMING CHAIRMAN” means the Chairman of the National
Indian Gaming Commission or any successor authorized under the Act.

(23) “NATIONAL INDIAN GAMING COMMISSION” means the National Indian
Gaming Commission or any successor authorized under the Act.

(24) “NET GAMING REVENUE” means Gross Gaming Revenues of a Gaming
Operating less—

(a) amounts paid out as, or paid for, prizes; and
(b) total gaming-related operating expenses, excluding management fees.

(25) “OPERATING EXPENSES” means any expenses incurred in the
operation of Gaming that is specifically designated as an operating expense in
any management contract or which by operation of Generally Accepted
Accounting Principles (GAAP) consistently applied is so treated.

(26) “PATRON” means a person participating in a game with the hope of
winning money or other benefit, but does not include a licensee, or any assignee
of a licensee.

(27) “PERSON” means any individual, firm, partnership, corporation, limited
liability company, association, or other business entity recognized under the laws
of the State.

(28) “PRIMARY MANAGEMENT OFFICIAL” means:
a. the person having management responsibility for a Management Contract;

03.23.2006 DRAFT 10


(10) “COUNCIL” means the Pawnee Business Council as described in the
Constitution of the Pawnee Nation of Oklahoma.

(11) “EQUIPMENT” means all gaming, office, concession, and maintenance
equipment necessary to the operation of Class |] Gaming or Class III Gaming, as
applicable, and of a Gaming Facility.

(12) “EQUIPMENT COSTS” as to any item of Equipment or period of time,
means the cost at which Equipment may be acquired pursuant to competitive
bidding.

(13) “FACILITY COSTS” means the actual and direct cost of acquiring a
gaming site and the development, construction, and establishment thereon of a
Gaming Facility, including the Equipment Costs incurred in connection therewith.

(14) “GAMING” means risking any money or other thing of value for gain,
contingent, wholly or partially, upon lot, chance, the operation of gaming
apparatus, or the happening or outcome of an event over which the person
taking the risk has no control.

(15) “GAMING FACILITY” means a building or buildings used in the operation
of Class Il Gaming or Class Ill Gaming, as applicable, including all
appurtenances, access roads, parking lots, easements, outside lighting, water
and sewer facilities, electrical facilities, heating and air conditioning equipment,
fixtures, and any and all other improvements reasonable and necessary to a
facility of similar operation and use.

(16) “GAMING OPERATION” means each economic entity that is licensed
under this Ordinance, operates the games, receives the revenues, issues the
prizes, and pays the expenses. A Gaming Operation may be operated by the
Tribe directly or by a licensed Management Contractor.

(17) “GAMING SITE” or “SITE” means the tract or tracts of land upon which a
Gaming Facility is located.
(18) “KEY EMPLOYEE?” of a Gaming Operation means:

(a) a person who performs one or more of the following functions:
(i) Shift leader;
(ii) counting room supervisor;
(iii) | security personnel;
(iv) custodian of gaming supplies or cash
(v) floor manager;
(vi) pit boss;
(vii) dealer;
(viii) croupier;
(ix) approver of credit;

03.23.2006 DRAFT 9


Section 12.3 Notification

Before taking any enforcement action authorized in this Section, the Tribal Gaming
Commission shall use its best efforts to notify the alleged violator, in person or by letter,
delivered to the alleged violator’s last known address, of the charges against the alleged
violator, and allow the alleged violator an opportunity for a prompt hearing. If the alleged
violator fails to respond, or cannot be found, the Tribal Gaming Commission may
proceed with a hearing notwithstanding, and take such action as it deems appropriate or
take action prior to hearing if gaming operation is jeopardized.

Section 12.4 Acknowledgement

Every Person which applies for a gaming license and accepts such license thereby
acknowledges the civil enforcement jurisdiction and authority of the Tribal Gaming
Commission and a court of competent jurisdiction under this Ordinance to order an
execution of the Person’s non-exempt property, the suspension or termination of the
Person's further conduct of gaming activities, and the seizure of the Person’s Gaming
Equipment or proceeds of other property, upon a proper finding of the Tribal Gaming
Commission or the Court that the Person has violated a provision of the Act, regulations
of the Commission, this Ordinance, or regulations promulgated by the Tribal Gaming
Commission, despite lack of actual notice, provided that the Tribal Gaming Commission
has used its best efforts to notify the Person, in person, or by letter delivered to the
Person’s last known address.

ARTICLE Xill
HEARINGS AND APPEALS

Section 13.1 Petition for Payment of Penalty

Any licensee paying a penalty for late filing or failing to file a report for which there is an
acceptable excuse may petition the Tribal Gaming Commission for a credit. The petition
shall be filed within thirty (30) days after the petitioner knew or should have known that
payment was excusable, but not more than six (6) months after payment in any case.

Section 13.2 Petition for Hearing and Reconsideration

Any person or entity aggrieved by a decision made or action taken by the Tribal Gaming
Commission without notice and opportunity for hearing, may petition the Tribal Gaming
Commission for a hearing and reconsideration. The petition shall be filed within thirty
(30) days after receipt of the petition, and may, upon establishing that it has jurisdiction
and finds good cause, affirm, modify, reverse and/or vacate the Tribal Gaming
Commission’s order.

ARTICLE XIV

03.23.2006 DRAFT 42


required background investigations. All such investigative agencies employed by the
Tribal Gaming Commission shall have appropriate experience in investigative
techniques in the subject matter of the specific area of inquiry for which they are
retained. Any private investigative agency or individual retained by the Commission
shall, except for communication with the Commission and authorized Commission
Employees, keep confidential the identity of each person interviewed and the
documents gathered or reviewed in the course of each background investigation.

Section 6.3 Fingerprinting

The Tribal Gaming Commission shall obtain or cause to be obtained a current set of
fingerprints on each person for whom background investigations are required, using
forms supplied by the National Indian Gaming Commission, which shall be referred to
the Federal Bureau of Investigation (FBI) Fingerprint Identification Division. The Tribal
Gaming Commission shall refer applicants for fingerprinting to the Pawnee Nation Law
Enforcement Department. The Pawnee Nation Law Enforcement Department will take
fingerprints pursuant to 25 C.F.R. § 522.2(h) and forward the completed forms to the
Tribal Gaming Commission.

Section 6.4 Investigative Procedures

Minimum background investigative procedures, that are followed by the Tribal Gaming
Commission's designated investigator, shall include the following:

(1) Verify by written or oral communication the information submitted by applicant. Such
application information will include all of the following:

(a) full name, other names used (oral or written), social security number(s), birth
date, place of birth, citizenship, gender, all languages (spoken or written);

(b) currently, and for the previous five (5) years, the business and employment
positions held, ownership interests in those businesses, business and residence
addresses for previous five (5) years, and drivers license numbers;

(c) the names and current addresses of at least three (3) personal references,
including one personal reference who was acquainted with the applicant during
each period of residence listed under paragraph (b) of this Section;

(d) current business and residence telephone numbers;

(e) a description of any existing and previous business relationships with the Tribe
and any other Indian Tribes, including ownership interests in those businesses;

(f) a description of any existing and previous business relationships with the gaming
industry generally, including ownership interests in those businesses;

(g) the name and address of any licensing or regulatory agency with which the
person has filed an application for a license or permit related to gaming, whether
or not such license or permit was granted;

03.23.2006 DRAFT 30


(b) sign a statement that contains the notice regarding false statements.

Section 5.4 Payment of Application Fee

The Tribal Gaming Commission shall establish a license application fee schedule. The
application fee must be paid to the Tribal Gaming Commission upon submission of a
license application. The purpose of the application fee is to defray the direct and
indirect costs to be incurred by the Tribal Gaming Commission in reviewing and
evaluating license applications and management contracts, including without limitation,
costs and expenses for conducting background investigations and employing
independent third-party consultants, accountants, and legal counsel to assist in the
license application review and evaluation process.

Section 5.5 Description on Application

An application for a gaming license shall include a description of the place, facility, or
location on Tribal Lands where the applicant will operate a Gaming Operation or where
the applicant will be employed.

Section 5.6 Manner of Filing Instruments with Tribal Gaming Commission

Any application, affidavit, return, report, fee, or other instrument, or payment required to
be filed with, delivered to, or served upon the Tribal Gaming Commission by this
Ordinance shall be deemed to be properly filed, delivered, or served, as the case may
be, if it is filed, delivered or served upon the Chairman of the Tribal Gaming
Commission at the Pawnee Tribal Reserve, or such Tribal employee at the Pawnee
Tribal Reserve as the Tribal Gaming Commission shall designate in writing.

ARTICLE VI
BACKGROUND INVESTIGATIONS

Section 6.1 Required Background Investigations

Upon receipt of any appointment, contract, or application of a Tribal Gaming
Commissioner, Management Contractor, Key Tribal Gaming Commission Employee, or
Primary Management Official or Key Employee of a Gaming Enterprise, the Tribal
Gaming Commission shall conduct, or cause to be conducted, a background
investigation of the above-referenced individual(s). The Tribal Gaming Commission
shall keep confidential the identity of each person interviewed and the documents
gathered or reviewed in the course of each background investigation.

Section 6.2 Authority to Conduct Background Investigations
The Tribal Gaming Commission shall have the authority to contract with private

investigative agencies or individuals licensed under the laws of any state to conduct the

03.23.2006 DRAFT 29


Article XV SERVICE OF PROCESS

Section 15.1 Tribal Gaming Commission Service Agent
Section 15.2 Management Service Agent

Article XVI_ SAVINGS PROVISION
Section 16.1 Invalidity
Article XVII. DISPUTES BETWEEN MANAGER AND PATRONS
Section 17.1 Improper Conduct by Patrons
Section 17.2 Resolving Disputes Between Patrons and Tribe or
Management Officials
Article XVIIl AMENDMENT OF ORDINANCE
Section 18.1 Amendment by Majority Vote
Article XIX EFFECTIVE DATE/REPEAL

Section 19.1 Effective Date and Repeal of Prior Ordinances

03.23.2006 DRAFT 6


Commission, Tribal Manager, Management Contractor, Primary Management
Official, Key Employee, or a member of the Pawnee Business Council.

(3) Assignment of Other Personnel. The Tribal Gaming Commission may request
the assignment of personnel to assist the Tribal Gaming Commission in carrying
out its duties under this Ordinance, unless otherwise prohibited by law or
contract, and as authorized by the Program Director, Executive Director and/or
Personnel Director.

Section 3.10 Access to Information

(1) General Authorization. The Tribal Gaming Commission may secure from any
department or agency of the Tribal government, and from cooperating agencies
or departments of the government of any Indian Tribe, any State, or the United
States information necessary to enable it to carry out its function hereunder.
Upon request of the Tribal Gaming Commission, the head of any department or
agency of the Tribe shall furnish such information to the Tribal Gaming
Commission unless otherwise prohibited by law.

(2) Distribution. The Tribal Gaming Commission is authorized, upon request for law
enforcement purposes or as required by law, to distribute to the National Indian
Gaming Commission, and any agency of another federally recognized tribe or
state having authority to regulate gaming or prosecute offenders for violations of
the appropriate gaming laws within the jurisdiction of such Tribe or state, such
information as it may have available, unless otherwise prohibited by law.

Section 3.11 Assessment of Fees

(1) Authorization. The Tribal Gaming Commission shall, from time to time,
promulgate regulations establishing a uniform schedule of fees to be paid
annually by each Gaming Operation that is regulated by this Ordinance, and shall
review said schedule annually during its budget process. The fee imposed on a
Gaming Operation may be reduced or waived by the Gaming Commission in the
event a Gaming Operation experiences a severe economic hardship or serious
natural disaster. The rate of fees imposed under this Section shall be the
assessment percentage to be:

(a) no less than 0.5 percent nor more than 2.5 percent of the first One Million
Dollars ($1,000,000) of the Gross Receipts, and

(b) no more than 5 percent of the Gross Receipts in excess of the first One
Million Dollars ($1,000,000) of the Gross Receipts from each entity
regulated by this Ordinance.

(2) Non-Payment. Failure to pay the appropriate fees required under any provision
of this Ordinance shall, subject to the regulations of the Tribal Gaming
Commission, be grounds for revocation or suspension of the license of the
nonpaying Person.

03.23.2006 DRAFT 20


Section 8.5 Report of Winners

The Gaming Manager shall file with the Tribal Gaming Commission a list of each winner
and winners of any Class II and Class Ili Game to comply with 25 U.S.C. 2719 (d). The
list shall be itemized by session and game and shall include the name of the winner, the
address of the winner, the social security number of the winner, dollar amount won or
the amount of fair market value of prize won, and the method of identification of the
winner prior to issuing payment or the prize to the winner.

Section 8.6 Report of Receipts and Disbursements

The Gaming Manager shall file with the Tribal Gaming Commission a verified report of
all receipts and disbursements of all funds related to said Class II and Class III Games
or sessions. Such reports shall also contain an itemized list of all disbursements
including, but not limited to, Operating Costs, Equipment Costs, Facility Costs,
materials, supplies, equipment furnished, and prizes paid. The required reports shall be
submitted on a frequency established pursuant to regulations adopted from time to time
by the Tribal Gaming Commission.

Section 8.6 Verification of Report

The Designated Business Entity shall verify the accuracy of each report submitted to the
Tribal Gaming Commission.

Section 8.7 No Tribal Liability

Neither the Tribe nor its officers, agents, or agencies, shall be responsible for the debts
or liabilities of any Gaming Operation, it being the intent that each Gaming Operation
shall be a corporate entity solely responsible (with its Management Contractor when
provided for by contract) for its own debts, torts, and other liabilities, and subject to suit
in its own name to the extent explicitly provided for by this Ordinance. No provision of
this Ordinance or regulations promulgated pursuant thereto constitutes a waiver of the
Tribe’s sovereign immunity from suit, except as expressly provided otherwise herein.

ARTICLE IX
NON-PROFIT GAMING

Section 9.1 License of Certain Non-Profit Organizations

The Tribal Gaming Commission shall be authorized to issue a license to conduct bingo
games to any organization that is a bona fide religious, charitable, labor, fraternal,
educational, or other non-profit which qualifies as a 501(c) tax exempt organization and
provided that such organization has been in existence for not less than two (2) years
prior to making application for license, if no part of the receipts derived from such
activity, except actual expenses incurred in the conduct thereof, is to insure of any

03.23.2006 DRAFT 37


individual member or employee of the organization, except as compensation for actual
expenses incurred by such person in the conduct of such activity.

Section 9.2 Licensing Procedure

The Tribal Gaming Commission shall adopt regulations governing the application and
licensing procedures for non-profit bingo to be conducted within Tribal jurisdiction. The
application form shall be prescribed by the Tribal Gaming Commission. The Tribal
Gaming Commission shall establish a schedule of appropriate license fees and any
exemptions from payment of such fees for such activities and operations and specific
reporting requirements.

ARTICLE X
RECORDS AND REPORTS

Section 10.1 Record Retention and Maintenance

(1) Scope. Each Gaming Operation shall keep and maintain sufficient books and
records to substantiate the Gross Gaming Receipts, Operating Costs, and uses of
revenues relating to the conduct of Gaming Operations authorized under a license.
Included in the records of the activity shall be session summary sheets, operational
budgets and projections, and tour/bus attendance and compensation.

(2) Duty to Account. No Management Contractor shall fail to account fully for all
moneys received or collected in connection with Gaming Operations.

Section 10.2 Statement of Gross Gaming Receipts and Net Revenues

(1) No later than the fifteenth (15th) day of each month, each Gaming Operation shall
provide, in a report form prescribed by the Tribal Gaming Commission, a statement
of Gross Gaming Receipts, Operating and net Revenues received or collected at
each Gaming Facility during the immediately preceding period.

(2) Consistent with reasonable gaming industry business practices, the Gross Gaming
Receipts derived from operations of tribally-owned and licensed Gaming
Operation(s) may be expended and disbursed by a Management Contractor as
specifically outlined in a Management Contract.

Section 10.3 Falsification of Books and Records

No licensee shall falsify any books or records relating to any transaction connected with
the conduct of Gaming Operations authorized under this Ordinance.

03.23.2006 DRAFT 38


(f) a complete financial statement showing assets, liabilities, net worth, all debts
owed and, including specifically, any financial agreements made relative to the
Gaming Operation with any person.

(2) Minimum Requirements for Business Entities. Each business entity seeking to be
licensed in any capacity shall submit the following minimum information with its
license application:

(a) a complete statement as to the form of the organizational and governing
documents and the name, address, and telephone number of the governmental
authority having copies of such records on file or responsible for oversight of the
organization;

(b) a complete certified copy of the entity's minute book(s), records relating to
ownership, governance, and management of the entity, and a complete list of all
owners of equity interests in the entity or other interests convertible to equity
interests;

(c) the entity's federal tax identification number;

(d) the address and telephone number of all places which it has or does conduct its
business, and the name, address, and telephone number of its service agent, if
any;

(e) a statement as to whether any Primary Management Official or Key Employee of
the business entity is a member, or Relative of a member, of the governing body
of the Tribe, any other Constitutional or statutory agency or body of the Tribe, or
a tribal employee;

(f) a statement as to whether the business entity, or any Primary Management
Official of Key Employee of the organization, has been convicted of any felony,
gaming offense, or offense involving moral turpitude;

(g) a statement setting forth all prior experiences or contact of the business entity,
its Primary Management Officials and Key Employees with Indian gaming
enterprises in any capacity, and the gaming industry generally, including
specifically, the name, address, and telephone number of any regulatory or
licensing agency having jurisdiction over or records of such prior activities;

(h) a statement describing any previous contact that the business entity, its Primary
Management Officials and Key employees have had with persons involved with
organized crime;

(i) a complete statement as to prior arrests, convictions, and civil suits, whether as
plaintiff or defendant, involving the business entity, its Primary Management
Officials and Key Employees, including the name of the Court, the style and
number of the case, a description of the claims by each of the parties, and the
outcome. Whenever possible, the final judgment, and any opinion, if available, of
the Court should be attached to the application;

(j) a complete list of every other organization with which the business entity is
affiliated, including without limitation, a parent, subsidiary, owner of equity
interests sufficient to name one person to a managing entity, organizations with

03.23.2006 DRAFT 26


TABLE OF CONTENTS

Article | INTRODUCTION
Section 1.1 Declaration of Policy
Section 1.2 Scope
Section 1.3 General Prohibition- Exceptions
Section 1.4 Definitions
Article Il GENERAL PROVISIONS
Section 2.1 Gaming Authorized
Section 2.2 Class Il Licensing
Section 2.3 Class Ill Licensing
Section 2.4 Interest and Responsibility
Section 2.5 Eligibility for Employment
Section 2.6 Audit Provisions
Section 2.7 Environmental Protection
Section 2.8 Age Restrictions
Section 2.9 Civil Penalties
Section 2.10 Criminal Penalties
Section 2.11 Requirements to Receive a Prize

Article II|_ © TRIBAL GAMING COMMISSION

Section 3.1
Section 3.2
Section 3.3
Section 3.4
Section 3.5
Section 3.6
Section 3.7
Section 3.8
Section 3.9
Section 3.10
Section 3.11

03.23.2006 DRAFT

Tribal Gaming Commission Created
Conflict of Interest

Voting

Appointment of Members

Terms of Office

Appointment of Officers

Authority and Responsibility
Reports

Staffing of Tribal Gaming Commission
Access to Information

Assessment of Fees


ARTICLE XVIII
AMENDMENT OF ORDINANCE

Section 18.1 Amendment by Majority Vote
This Ordinance may be amended by majority vote of the Pawnee Business Council.
Within fifteen (15) days after adoption, the Pawnee Business Council shall submit any

amendment to for the Chairman of the National Indian Gaming Commission for
approval.

ARTICLE XIX
EFFECTIVE DATE/REPEAL
Section 19.1 Effective Date and Repeal of Prior Ordinances
This Ordinance shall be effective upon approval of the Chairman of the National Indian

Gaming Commission. Once effective, this Ordinance shall serve to repeal all previous
gaming ordinances of the Tribe.

03.23.2006 DRAFT 45


APPLICABLE LAW

Section 14.1 Controversies Involving Contract

All controversies involving contracts relating to Gaming entered into under the authority
of the Tribe on Tribal Lands shall be resolved in the Pawnee Tribal Court, as
appropriate, and in accordance with:

(1) The Act;

(2) Regulations promulgated by the National Indian Gaming Commission;
(3) | This Ordinance;

(4) Tribal laws, ordinances, regulations, and resolutions;

(5) Pawnee Tribal Court decisions; and

In the event that no Federal or Tribal law, ordinance, regulation, resolution, court
precedent exists to address any particular case or controversy, then disputes shall be
resolved by looking first to the laws and court decisions of other Indian tribes, and
thereafter to the law of the State of Oklahoma. No provision of this Ordinance or
regulations promulgated pursuant thereto constitutes a waiver of the Tribe’s sovereign
immunity from suit, except as expressly provided otherwise herein.

ARTICLE XV

SERVICE OF PROCESS
Section 15.1 Tribal Gaming Commission Service Agent
The Chairman of the Tribal Gaming Commission is hereby designated as the agent for
service of any official determination, order, or notice of violation. Specific confirmation of
this designation shall be communicated to the National Indian Gaming Commission.
Section 15.2 Management Service Agent
Each Management Contractor shall designate, by written notification to the Tribal

Gaming Commission and the National Indian Gaming Commission, an agent for service
of any official determination, order, or notice of violation.

ARTICLE XVI

SAVINGS PROVISION

Section 16.1 Invalidity
If any provision of this Ordinance or the application thereof to any Person or
circumstances is held invalid, the invalidity shall not affect other provisions or

03.23.2006 DRAFT 43


Section 2.3 Class Ill Licensing

Class |Il Games, as provided for in any compact between any State and the Tribe, or
such procedures as prescribed by the Secretary of the Interior pursuant to the Act, may
be licensed and conducted on Tribal lands.

Section 2.4 Interest and Responsibility

The Tribe shall have the sole propriety interest in and responsibility for the conduct of
any Gaming Operation authorized by this Ordinance. If the Tribe, acting through the
Tribal Business Council, elects to allow individually owned Gaming Operation, it shall
authorize such operations in accordance with the requirements set forth in 25 C.F.R.
§§ 522.10 and 522.11.

Section 2.5 Eligibility for Employment

Tribal Managers and Management Contractors licensed to conduct Gaming pursuant to
this Ordinance shall never allow any or the following persons to become an employee of
such Tribal Manager or Management Contractor, or otherwise receive any salary,
remuneration, dividend, benefit, or compensation of any kind whatsoever, either directly
or indirectly, as a result of, or due to, the conduct of Gaming within Tribal Lands or the
Tribe's jurisdiction:

(1) any Person less than eighteen (18) years of age;

(2) any Person less than twenty-one (21) years of age if alcoholic beverages are
served on the gaming floor;

(3) any Person who has been convicted by any court of competent jurisdiction of a
felony, a gaming offense, or other crime involving moral turpitude; or

(4) any Person who holds an elected office of the Tribe or any member of the
Pawnee Business Council or the Tribal Gaming Commission.

Section 2.6 Audit Provisions

The following audit requirements shall apply to applicants, Gaming Operations, and
contracts as set forth below:

(1) Implied Consent for Audits and Review. In return for the privilege of conducting
Gaming within the Tribal jurisdiction, any Person that applies for or receives a
license to conduct Gaming pursuant to this Ordinance shall be deemed to have
consented to the audit and review of any of its records by authorized accounting
or law enforcement agencies or officers of the Tribal Gaming Commission
without notice or warrant at any reasonable time, including spot checks or field
audits of its operations during Gaming sessions.

(2) Annual Audits. At least once each calendar year, a complete audit, which may
be encompassed within the existing independent Tribal audit system, will be

03.23.2006 DRAFT 13


Court may impose a civil penalty as provided in Section 12.1 for each separate violation
in addition to any or all actual damages, administrative costs, and the fees of counsel
retained by the Tribal Gaming Commission to prosecute such offense. Each game
played at which a continuing violation occurs shall be deemed a separate violation.

Section 2.10 Criminal Penalties

Native Americans violating the provisions of this Ordinance shall be guilty of a criminal
offense and shall, upon conviction thereof, be punished by confinement for a period of
not more than one (1) year, and a fine of not more than five thousand dollars ($5,000),
or by both such fine and imprisonment for each separate violation.

Section 2.11 Requirements to Receive a Prize

In addition to winning any particular game without cheating, or otherwise being the first
player to properly cover a predetermined and publicly announced pattern of squares
upon the card being used by him, a player, in order to qualify to receive a Prize, must
furnish:

(1) Acceptable proof of said winner's name, address, and social security number.
Acceptable proof may be a driver's license, photo identification, or other
identification. An oral statement or the winner's social security number may be
acceptable when accompanied by two forms of identification, one of which is
valid photo identification; and

(2) A signed receipt acknowledging acceptance and receipt of the prize awarded.

ARTICLE Ill
TRIBAL GAMING COMMISSION

Section 3.1 Tribal Gaming Commission Created

There is hereby established a Tribal Gaming Commission which shall be called the
Pawnee Tribal Gaming Commission. The Tribal Gaming Commission may meet and
take official action only on Pawnee Tribal Lands.

Section 3.2 Conflict of Interest

No member of the Tribal Gaming Commission shall engage in any business which is
subject to regulation by the provisions of this Ordinance. No member, during his term of
office or for two (2) years thereafter, may consult with or in any manner be employed by
or own, directly or through a relative, nominee, or trustee, any interest in any business
subject to regulation by this Ordinance. Members of the Tribal Gaming Commission
and Commission employees are prohibited from playing or participating in any gaming
activity in any Gaming Facility regulated by this Ordinance.

03.23.2006 DRAFT 15


PAWNEE NATION OF OKLAHOMA

Gaming Ordinance
2005

Containing Revisions — March 30", 2006
Forwarded to NIGC
<>
Revisions
Approved
By
Pawnee Business Council
In
Special Meeting
Conducted
April 12", 2006

03.23.06 Draft


ARTICLE VIII
TRIBAL GAMING

Section 8.1 Use of Net Revenue

(1) Purpose. Net Revenue from any Tribal Gaming Operation(s) shall only be used for
the following purposes:

(a) To fund Tribal government operations and/or programs;

(b) To provide for the general welfare of the Tribe and its members;
(c) To promote Tribal economic development;

(d) To donate to charitable organizations;

(e) To help fund operations of local Tribal agencies.

(2) Per Capita Payments. No per capita payment of such Revenues may be made. If
the Pawnee Business Council subsequently elects to make per capita payments, it
shall authorize such payments only upon approval of a gaming revenue allocation
plan submitted to the Secretary of the United States Department of Interior pursuant
to 25 U.S.C. § 2710(b)(3).

Section 8.2 Regulations of Tribal Subdivision

Including those gaming operations managed through Management Contractors, each
separate Tribal Gaming Operation shall be regulated by the Tribal Gaming Commission
as provided for and to the extent of this Ordinance and any regulations hereinafter
adopted, the Act, and regulations of the National Indian Gaming Commission. All
Gaming Operations shall be subordinate agencies of the Tribe.

Section 8.3 Duties of the Designated Business Entity

It shall be the duty of the Designated Business Entity, approved by Business Council, to
manage and conduct all Class II and Class II! Games of a Tribal Gaming Operation in a
fiduciary capacity to maximize the Revenues of said operation, to cause to be prepared
and submitted to the Pawnee Business Council such reports as may be required by law,
to account for all monies and property entrusted to the Tribal Gaming Operation, to
collect and pay over all taxes due the Tribe and all assessments due the National Indian
Gaming Commission and the Tribal Gaming Commission, and to perform any other
duties as may be required by law.

Section 8.4 Location of Gaming Sessions
All games and sessions of Class II and Class II| Gaming conducted by a Tribal Gaming

Operation shall be conducted at a Gaming Facility approved by the Tribal Gaming
Commission within the territorial jurisdiction of the Tribe for that Gaming Operation.

03.23.2006 DRAFT 36


(b) Primary Management Official License;
(c) Gaming Manager License;

(d) Key Employee License; and

(e) General Employee License.

(3) Other Licenses. Business entity licenses and other licenses, as referred to in
Part 10 of the Pawnee Tribe of Oklahoma and State of Oklahoma Gaming
Compact and associated rules and regulations, are required. Each such license
shall be valid for no more than two (2) years from the date of issuance.

Section 4.3 License Fees

(1) License Fees will be reviewed annually.

(2) Fees for Third Party Operations. For Gaming Operations to be conducted by a
Management Contractor pursuant to a Management Agreement, the Management
Contractor shall tender the designated fee or fees to the Tribal Gaming Commission
at the time application is made for a license:

(a} Gaming Facility License

(b) Management Contractor's License
(c) Primary Management Official License
(d) Gaming Manager License

(e) Key Employee License

(f) General Employee License

(3) Fees for Facilities Operated by Tribe. License fees for Tribal owned and operated
Gaming Facilities shall tender the designated fee or fees to the Tribal Gaming
Commission at the time application is made for a license.

(a) Gaming Facility

(b) Primary Management Official License
(c) Gaming Manager License

(d) Key Employee License

(e) General Employee License

(4) Rates of any and all license fees shall be reviewed by the Tribal Gaming
Commission annually for the purpose of determining and revising rate amounts if
deemed necessary.

03.23.2006 DRAFT 24


(881 Little Dee Drive . fT
|. 'RAWNEE, OK 74058

* PHONE: (918) 762-3621". ~

“Resolution 406-23
Apri os



(3) Findings. The Tribal Gaming Commission shall review the investigative reports
covering a Person's prior activities, criminal records, if any, and business affairs,
reputation, habits, and associations to make a finding concerning the eligibility of
such person for employment in the Gaming Operation. If the Tribal Gaming
Commission determines that employment of the person poses a threat to the public
interest, or the Tribal interest, or to the effective regulation and control of Gaming, or
creates or enhances the dangers of unsuitable, unfair, or illegal practices and
methods and activities in the conduct of Gaming or the carrying on of related
business and financial arrangements incidental to the conduct of gaming, a
management contractor or the Gaming Operation shall not employ that person in a
key employee or primary management official position.

Section 6.6 Procedures for Forwarding Applications and Background
Investigation Reports to the National Indian Gaming Commission

(1) When any Tribal Gaming Commissioner, Key Tribal Gaming Commission Employee,
Primary Management Official and Key Employee of the Gaming Enterprise begins
work for the Tribal Gaming Commission or at a Gaming Operation authorized by this
Ordinance, the Tribal Gaming Commission shall forward to the National Indian
Gaming Commission a completed application for employment and conduct the
background investigation and make the determination referred to in Section 6.5.

(2) The Tribal Gaming Commission shall forward the report referred to in Section 6.5 to
the National Indian Gaming Commission within sixty (60) days after a Commissioner
or employee begins work or within sixty (60) days of the approval of this Ordinance
by the Chairman of the National Indian Gaming Commission.

(3) The Gaming Operation shall not employ as a Primary Management Official or Key
Employee any person who does not have a license after ninety (90) days.

Section 6.7 Report to the National Indian Gaming Commission

(1) Investigative Report. Pursuant to the procedures set out in Section 6.6 of this
Ordinance, the Tribal Gaming Commission shall prepare and forward to the National
Indian Gaming Commission an_ investigative report on each background
investigation. An investigative report shall include all of the following:

(a) steps taken in conducting the background investigation;
(b) results obtained;

(c) conclusions reached; and

(d) the basis for those conclusions.

(2) Eligibility Findings. The Tribal Gaming Commission shall submit to the National
Indian Gaming Commission the investigative report on the background investigation
along with a copy of the eligibility determination made under Section 6.5, and shall

03.23.2006 DRAFT 32


(3) use of any fraudulent scheme or technique, including when an operator or player
of gaming tickets directly or indirectly solicits, provides, or receives inside
information of the status of a game for the benefit of either Person; or

(4) knowingly cause, aid, abet, or conspire with another Person or cause any Person
to violate any provision of this Ordinance or any rule adopted under this
Ordinance.

ARTICLE XIl
CIVIL ENFORCEMENT

Section 12.1 Action to be Taken

The Tribal Gaming Commission may take any one or a combination of the following
actions with respect to any Person who violates any provision of this Ordinance:

(1) Impose a civil fine not to exceed the maximum amount allowed by the National
Indian Gaming Commission for each day any violation continues;

(2) Suspend or revoke any gaming license issued by the Tribal Gaming
Commission; or

(3) Bring an action in Tribal Court for imposition of one or more of the following
sanctions:

(a) Suspension or termination of the license and further conduct of Gaming
Operations or other activities;

(b) Seizure of any gaming apparatus, proceeds, or other property of a
licensee or property connected with the Gaming Operations engaged in
by the licensee;

(c) Exclusion of such persons from Gaming Facilities;

(d) Collection of any unpaid fees together with interest at the rate of one
percent (1%) per month;

(e) Execution on any non-exempt property of a violator located within the
exterior boundaries of the Tribal Lands; or

(f) A penalty of fifty dollars ($50.00) per day for failure to file any report when
due and five hundred dollars ($500.00) per day for failure to file such
report after notice and demand for payment.

Section 12.2 Jurisdiction

The Tribal Court shall have jurisdiction over any civil action brought by the Tribal
Gaming Commission under this Ordinance, and also shall have the authority to impose
any and all sanctions imposed by the Tribal Gaming Commission pursuant to this
Ordinance.

03.23.2006 DRAFT 4l


which the applicant has at least one common director, officer, Primary
Management Official, or Key Employee even though the individual's status may
not be the same in both organizations; and

(k) a description of the safeguards the organization has in place to prevent any
person from becoming a Primary Management Official or Key Employee of said
organization without first obtaining a license from the Tribal Gaming
Commission.

(3) Additional Information Required of a Management Contractor. The following
additional information shall be submitted with an application for a Management
Contractor license:

(a) an organizational chart of the proposed management organization and job
description of the employees of the proposed Gaming Operation. The chart shall
identify which employees are or will be Primary Management Officials and the
Key Employees of the Gaming Operation;

(b) a statement describing all other prior and current management contracts the
Management Contractor has providing for the operation of any Indian or non-
Indian gaming location and, if so, the description of the location and the name,
address, and telephone number of the party with whom such contract was
entered;

(c) a list of all jurisdictions in which the Management Contractor regularly conducts
business or maintains an office or other place of business; and

(d) all other information required by 25 U.S.C. § 2711 and 25 C.F.R. § 537.1.

(4) Gaming Facility License. Applications for a Gaming Facility license must contain at
a minimum:
(a) a complete legal description of the Gaming Site, including evidence that the

Gaming Site is within the territorial jurisdiction of the Tribe and qualifies as Indian
Land;

(b) a complete and accurate description of the Gaming Facility, including where
possible, blueprints, drawings, floor plans, including square footage, utility
services, waste services, parking plans, and photographs (or renderings for a
facility to be constructed);

(c) evidence that the proposed Gaming Facility complies with national building and
fire codes; and

({d) evidence that the proposed Gaming Facility is insurable against fire and other
hazards, and that liability insurance may be obtained to protect the public from
hazards which may exist in or around the proposed Gaming Facility.

(5) Verification. Every application for a license shall be verified under oath of
affirmation.

03.23.2006 DRAFT 27


b. each person (including individuals comprising a business entity) having a
direct financial interest in a Management Contract. In the case of a
corporation, the term includes those Persons who serve on the Board of
Directors of such corporation and every Person who owns, directly or
indirectly, either individually or by agent, including Relatives, any stock in
a corporate Management Contractor or equity interests in any other legal
entity which is a Management Contractor however those shares or
interests be designated, or a Person having sufficient voting power
individually or by proxy to elect at least one member to the Board of
Directors or other managing entity of a Management Contractor. The term
also includes all other persons employed by a Management Contractor in
any capacity, and Relatives of persons who are defined as Primary
Management officials by the preceding text, having five percent (5%) or
more equity ownership, either individually or by agent, including Relatives,
in any other business entity hired by a Management Contractor or by
doing any business with a Management Contractor with respect to an
agreement entered into by the Management Contractor in a gaming
operation;

c. any person who has authority:
(i) to hire and fire employees; or
(ii) to set up working policy for a Gaming Operation; or

(ili) the chief financial officer or other person who has _ financial
management responsibility.

(29) “PRIZE COSTS” means, as to any period of time, the total amount of all money
and property (limited to the actual acquisition costs of property prizes) given away as
prizes to bona fide participants of gaming conducted at a Gaming Facility.

(30) “RELATIVE” means an individual related to a referenced natural Person as a
father, mother, son, daughter, brother, sister, husband, wife, step-father, step-mother,
step-son, step-daughter, step-brother, step-sister, half-brother, or half-sister.

(31) “REVENUE” means Gross Gaming Receipts less Operating Expenses, Prize
Costs, Actual Amortized Payments made to reimburse Development Advances, and a
percentage of the Equipment Costs appropriate for the period for which the Revenue is
to be calculated.

(32) “STATE” means any State and any of its agencies or instrumentalities.

(33) “TRIBAL BUSINESS COUNCIL” means the Pawnee Business Council as
described in the Constitution of the Pawnee Nation of Oklahoma.

(34) “TRIBAL COURT” means courts duly constituted under the Constitution of the
Pawnee Nation of Oklahoma.

(35) “TRIBAL GAMING CHAIRMAN” means the Chairman of the Pawnee Tribal
Gaming Commission.

03.23.2006 DRAFT 1


conducted by a certified public accountant designated by the Tribal Gaming
Commission for each Gaming Operation and Gaming Facility. The resulting
audit reports shall be submitted promptly to the Tribal Gaming Commission and
the National Indian Gaming Commission.

(3) Audit of Contracts. All contracts for supplies, services, or concessions for a
contract amount in excess of Twenty-Five Thousand and no/100 dollars
($25,000) annually (except contracts for professional legal or accounting
services) relating to a Gaming Operation shall be subject to such independent
audits, and each such contract shall contain a provision whereby each party
thereto agrees to cooperate and comply with the audit.

(4) Costs of Audits. The Tribal Gaming Commission shall levy upon each Gaming
Operation or Gaming Facility a fee sufficient to pay for the expenses associated
with the audit or audits provided for by this Section.

Section 2.7. Environmental Protection

Every Gaming Operation, including any Tribal Manager or Management Contractor shall
construct, maintain, and operate a Gaming Facility in a manner which adequately
protects the environment and the public health and safety and complies with applicable
environmental laws, regulations, and license requirements. The Tribal Gaming
Commission shall have jurisdiction to make and enforce any regulations necessary to
protect the environment and the public health and safety with regard to the construction,
maintenance, and operation of a Gaming Facility. In doing so, the Tribal Gaming
Commission may request the assistance of the Tribal Health Department or any other
interested Tribal or federal agency. Any Person or Gaming Operation, including a Tribal
Manager or Management Contractor, submitting a Gaming Site for proposed Gaming
Operations, shall be required to provide the Tribal Gaming Commission with an
appropriate environmental report and assessment.

Section 2.8 Age Restrictions

No person under the age of eighteen (18) years shall be permitted to frequent the
gaming floor areas of a Gaming Facility or otherwise participate or play in any Gaming
activity regulated by this Ordinance. No person under the age of twenty-one (21) shall
be permitted to patronize any area of a Gaming Facility where alcohol is sold or served,
except for restaurant areas of a Gaming Facility where the primary source of income is
food.

Section 2.9 Civil Penalties
Any violations of this Gaming Ordinance may be subject to Civil Penalties, as
authorized. The Tribal Gaming Commission is authorized to bring a civil action in any

court of competent jurisdiction, including the Tribal Court, against any Person violating
the provisions of this Ordinance. Upon finding that a violation has occurred, the Tribal

03.23.2006 DRAFT 14