TRIBAL-STATE GAMING COMPACT …

                     TRIBAL-STATE GAMING COMPACT



              Between the *1, a federally recognized Indian Tribe,
                                    and the
                         STATE OF CALIFORNIA



This Tribal-State Gaming Compact is entered into on a government-to-government basis
by and between the *1, a federally- recognized sovereign Indian tribe (hereafter "Tribe"),
and the State of California, a sovereign State of the United States (hereafter "State"),
pursuant to the Indian Gaming Regulatory Act of 1988 (P.L. 100-497, codified at 18
U.S.C. Sec. 1166 et seq. and 25 U.S.C. Sec. 2701 et seq.) (hereafter "IGRA"), and any
successor statute or amendments.

PREAMBLE

A. In 1988, Congress enacted IGRA as the federal statute governing Indian gaming in the
United States. The purposes of IGRA are to provide a statutory basis for the operation of
gaming by Indian tribes as a means of promoting tribal economic development, self-
sufficiency, and strong tribal governments; to provide a statutory basis for regulation of
Indian gaming adequate to shield it from organized crime and other corrupting influences;
to ensure that the Indian tribe is the primary beneficiary of the gaming operation; to
ensure that gaming is conducted fairly and honestly by both the operator and players; and
to declare that the establishment of an independent federal regulatory authority for
gaming on Indian lands, federal standards for gaming on Indian lands, and a National
Indian Gaming Commission are necessary to meet congressional concerns.

B. The system of regulation of Indian gaming fashioned by Congress in IGRA rests on an
allocation of regulatory jurisdiction among the three sovereigns involved: the federal
government, the state in which a tribe has land, and the tribe itself. IGRA makes Class III
gaming activities lawful on the lands of federally-recognized Indian tribes only if such
activities are: (1) authorized by a tribal ordinance, (2) located in a state that permits such
gaming for any purpose by any person, organization or entity, and (3) conducted in
conformity with a gaming compact entered into between the Indian tribe and the state and
approved by the Secretary of the Interior.

C-1. The Tribe is currently operating a tribal gaming casino offering Class III gaming
activities on its land. On September 1, 1999, the largest number of Gaming Devices
operated by the Tribe was *2.

C-2. [ALTERNATE PARAGRAPH] The Tribe does not currently operate a gaming
facility that offers Class III gaming activities. However, on or after the effective date of
this Compact, the Tribe intends to develop and operate a gaming facility offering Class
III gaming activities on its reservation land, which is located in *3 County of California.

D. The State enters into this Compact out of respect for the sovereignty of the Tribe; in
recognition of the historical fact that Indian gaming has become the single largest
revenue-producing activity for Indian tribes in the United States; out of a desire to
terminate pending "bad faith" litigation between the Tribe and the State; to initiate a new
era of tribal-state cooperation in areas of mutual concern; out of a respect for the
sentiment of the voters of California who, in approving Proposition 5, expressed their
belief that the forms of gaming authorized herein should be allowed; and in anticipation
of voter approval of SCA 11 as passed by the California legislature.

E. The exclusive rights that Indian tribes in California, including the Tribe, will enjoy
under this Compact create a unique opportunity for the Tribe to operate its Gaming
Facility in an economic environment free of competition from the Class III gaming
referred to in Section 4.0 of this Compact on non-Indian lands in California. The parties
are mindful that this unique environment is of great economic value to the Tribe and the
fact that income from Gaming Devices represents a substantial portion of the tribes'
gaming revenues. In consideration for the exclusive rights enjoyed by the tribes, and in
further consideration for the State's willingness to enter into this Compact, the tribes have
agreed to provide to the State, on a sovereign-to-sovereign basis, a portion of its revenue
from Gaming Devices.

F. The State has a legitimate interest in promoting the purposes of IGRA for all federally-
recognized Indian tribes in California, whether gaming or non-gaming. The State
contends that it has an equally legitimate sovereign interest in regulating the growth of
Class III gaming activities in California. The Tribe and the State share a joint sovereign
interest in ensuring that tribal gaming activities are free from criminal and other
undesirable elements.

Section 1.0. PURPOSES AND OBJECTIVES.

The terms of this Gaming Compact are designed and intended to:

(a) Evidence the goodwill and cooperation of the Tribe and State in fostering a mutually
respectful government-to-government relatio nship that will serve the mutual interests of
the parties.

(b) Develop and implement a means of regulating Class III gaming, and only Class III
gaming, on the Tribe's Indian lands to ensure its fair and honest operation in accordance
with IGRA, and through that regulated Class III gaming, enable the Tribe to develop self-
sufficiency, promote tribal economic development, and generate jobs and revenues to
support the Tribe's government and governmental services and programs.

(c) Promote ethical practices in conjunction with that gaming, through the licensing and
control of persons and entities employed in, or providing goods and services to, the
Tribe's Gaming Operation and protecting against the presence or participation of persons
whose criminal backgrounds, reputations, character, or associations make them unsuitable
for participation in gaming, thereby maintaining a high level of integrity in tribal
government gaming.

Sec. 2.0. DEFINITIONS.

Sec. 2.1. "Applicant" means an individual or entity that applies for a Tribal license or
State certification.

Sec. 2.2. "Association" means an association of California tribal and state gaming
regulators, the membership of which comprises up to two representatives from each tribal
gaming agency of those tribes with whom the State has a gaming compact under IGRA,
and up to two delegates each from the state Division of Gambling Control and the state
Gambling Control Commission.

Sec. 2.3. "Class III gaming" means the forms of Class III gaming defined as such in 25
U.S.C. Sec. 2703(8) and by regulations of the National Indian Gaming Commission.

Sec. 2.4. "Gaming Activities" means the Class III gaming activities authorized under this
Gaming Compact.

Sec. 2.5. "Gaming Compact" or "Compact" means this compact.

Sec. 2.6. "Gaming Device" means a slot machine, including an electronic,
electromechanical, electrical, or video device that, for consideration, permits: individual
play with or against that device or the participation in any electronic, electromechanical,
electrical, or video system to which that device is connected; the playing of games
thereon or therewith, including, but not limited to, the playing of facsimiles of games of
chance or skill; the possible delivery of, or entitlement by the player to, a prize or
something of value as a result of the application of an element of chance; and a method
for viewing the outcome, prize won, and other information regarding the playing of
games thereon or therewith.

Sec. 2.7. "Gaming Employee" means any person who (a) operates, maintains, repairs,
assists in any Class III gaming activity, or is in any way responsible for supervising such
gaming activities or persons who conduct, operate, account for, or supervise any such
gaming activity, (b) is in a category under federal or tribal gaming law requiring
licensing, (c) is an employee of the Tribal Gaming Agency with access to confidential
information, or (d) is a person whose employment duties require or authorize access to
areas of the Gaming Facility that are not open to the public.

Sec. 2.8. "Gaming Facility" or "Facility" means any building in which Class III gaming
activities or gaming operations occur, or in which the business records, receipts, or other
funds of the gaming operation are maintained (but excluding offsite facilities primarily
dedicated to storage of those records, and financial institutions), and all rooms, buildings,
and areas, including parking lots and walkways, a principal purpose of which is to serve
the activities of the Gaming Operation, provided that nothing herein prevents the conduct
of Class II gaming (as defined under IGRA) therein.

Sec. 2.9. "Gaming Operation" means the business enterprise that offers and operates
Class III Gaming Activities, whether exclusively or otherwise.

Sec. 2.10. "Gaming Ordinance" means a tribal ordinance or resolution duly authorizing
the conduct of Class III Gaming Activities on the Tribe's Indian lands and approved under
IGRA.

Sec. 2.11. "Gaming Resources" means any goods or services provided or used in
connection with Class III Gaming Activities, whether exclusively or otherwise, including,
but not limited to, equipment, furniture, gambling devices and ancillary equipment,
implements of gaming activities such as playing cards and dice, furniture designed
primarily for Class III gaming activities, maintenance or security equipment and services,
and Class III gaming consulting services. "Gaming Resources" does not include
professional accounting and legal services.

Sec. 2.12. "Gaming Resource Supplier" means any person or entity who, directly or
indirectly, manufactures, distributes, supplies, vends, leases, or otherwise purveys
Gaming Resources to the Gaming Operation or Gaming Facility, provided that the Tribal
Gaming Agency may exclude a purveyor of equipment or furniture that is not specifically
designed for, and is distributed generally for use other than in connection with, Gaming
Activities, if the purveyor is not otherwise a Gaming Resource Supplier as described by
of Section 6.4.5, the compensation received by the purveyor is not grossly
disproportionate to the value of the goods or services provided, and the purveyor is not
otherwise a person who exercises a significant influence over the Gambling Operation.

Sec. 2.13. "IGRA" means the Indian Gaming Regulatory Act of 1988 (P.L. 100-497, 18
U.S.C. Sec. 1166 et seq. and 25 U.S.C. Sec. 2701 et seq.) any amendments thereto, and
all regulations promulgated thereunder.

Sec. 2.14. "Management Contractor" means any Gaming Resource Supplier with whom
the Tribe has contracted for the management of any Gaming Activity or Gaming Facility,
including, but not limited to, any person who would be regarded as a management
contractor under IGRA.

Sec. 2.15. "Net Win" means "net win" as defined by American Institute of Certified
Public Accountants.

Sec. 2.16. "NIGC" means the National Indian Gaming Commission.

Sec. 2.17. "State" means the State of California or an authorized official or agency
thereof.
Sec. 2.18. "State Gaming Agency" means the entities authorized to investigate, approve,
and regulate gaming licenses pursuant to the Gambling Control Act (Chapter 5
(commencing with Section 19800) of Division 8 of the Business and Professions Code).

Sec. 2.19. "Tribal Chairperson" means the person duly elected or selected under the
Tribe's organic documents, customs, or traditions to serve as the primary spokesperson
for the Tribe.

Sec. 2.20. "Tribal Gaming Agency" means the person, agency, board, committee,
commission, or council designated under tribal law, including, but not limited to, an
intertribal gaming regulatory agency approved to fulfill those functions by the National
Indian Gaming Commission, as primarily responsible for carrying out the Tribe's
regulatory responsibilities under IGRA and the Tribal Gaming Ordinance. No person
employed in, or in connection with, the management, supervision, or conduct of any
gaming activity may be a member or employee of the Tribal Gaming Agency.

Sec. 2.21. "Tribe" means the Dry Creek Rancheria, a federally-recognized Indian tribe, or
an authorized official or agency thereof.

Sec. 3.0 CLASS III GAMING AUTHORIZED AND PERMITTED. The Tribe is hereby
authorized and permitted to engage in only the Class III Gaming Activities expressly
referred to in Section 4.0 and shall not engage in Class III gaming that is not expressly
authorized in that Section.

Sec. 4.0. SCOPE OF CLASS III GAMING.

Sec. 4.1. Authorized and Permitted Class III gaming. The Tribe is hereby authorized and
permitted to operate the following Gaming Activities under the terms and conditions set
forth in this Gaming Compact:

(a) The operation of Gaming Devices.

(b) Any banking or percentage card game.

(c) The operation of any devices or games that are authorized under state law to the
California State Lottery, provided that the Tribe will not offer such games through use of
the Internet unless others in the state are permitted to do so under state and federal law.

(e) Nothing herein shall be construed to preclude negotiation of a separate compact
governing the conduct of off- track wagering at the Tribe's Gaming Facility.

Sec. 4.2. Authorized Gaming Facilities. The Tribe may establish and operate not more
than two Gaming Facilities, and only on those Indian lands on which gaming may
lawfully be conducted under the Indian Gaming Regulatory Act. The Tribe may combine
and operate in each Gaming Facility any forms and kinds of gaming permitted under law,
except to the extent limited under IGRA, this Compact, or the Tribe's Gaming Ordinance.

Sec. 4.3. Authorized number o f Gaming Devices

Sec. 4.3.1 The Tribe may operate no more Gaming Devices than the larger of the
following:

(a) A number of terminals equal to the number of Gaming Devices operated by the Tribe
on September 1, 1999; or

(b) Three hundred fifty (350) Gaming Devices.

Sec. 4.3.2. Revenue Sharing with Non-Gaming Tribes.

(a) For the purposes of this Section 4.3.2 and Section 5.0, the following definitions apply:

(i) A "Compact Tribe" is a tribe having a compact with the State that authorizes the
Gaming Activities authorized by this Compact. Federally-recognized tribes that are
operating fewer than 350 Gaming Devices are "Non-Compact Tribes." Non-Compact
Tribes shall be deemed third party beneficiaries of this and other compacts identical in all
material respects. A Compact Tribe that becomes a Non-Compact Tribe may not
thereafter return to the status of a Compact Tribe for a period of two years becoming a
Non-Compact Tribe.

(ii) The Revenue Sharing Trust Fund is a fund created by the Legislature and
administered by the California Gambling Control Commission, as Trustee, for the receipt,
deposit, and distribution of monies paid pursuant to this Section 4.3.2.

(iii) The Special Distribution Fund is a fund created by the Legislature for the receipt,
deposit, and distribution of monies paid pursuant to Section 5.0.

Sec. 4.3.2.1. Revenue Sharing Trust Fund.

(a) The Tribe agrees with all other Compact Tribes that are parties to compacts having
this Section 4.3.2, that each Non-Compact Tribe in the State shall receive the sum of $1.1
million per year. In the event there are insufficient monies in the Revenue Sharing Trust
Fund to pay $1.1 million per year to each Non-Compact Tribe, any available monies in
that Fund shall be distributed to Non-Compact Tribes in equal shares. Monies in excess
of the amount necessary to $1.1 million to each Non-Compact Tribe shall remain in the
Revenue Sharing Trust Fund available for disbursement in future years.

(b) Payments made to Non-Compact Tribes shall be made quarterly and in equal shares
out of the Revenue Sharing Trust Fund. The Commission shall serve as the trustee of the
fund. The Commission shall have no discretion with respect to the use or disbursement of
the trust funds. Its sole authority shall be to serve as a depository of the trust funds and to
disburse them on a quarterly basis to Non-Compact Tribes. In no event shall the State's
General Fund be obligated to make up any shortfall or pay any unpaid claims.

Sec. 4.3.2.2. Allocation of Licenses.

(a) The Tribe, along with all other Compact Tribes, may acquire licenses to use Gaming
Devices in excess of the number they are authorized to use under Sec. 4.3.1, but in no
event may the Tribe operate more than 2,000 Gaming Devices, on the following terms,
conditions, and priorities:

(1). The maximum number of machines that all Compact Tribes in the aggregate may
license pursuant to this Section shall be a sum equal to 350 multiplied by the number of
Non-Compact tribes as of September 1, 1999, plus the difference between 350 and the
lesser number authorized under Section 4.3.1.

(2) The Tribe may acquire and maintain a license to operate a Gaming Device by paying
into the Revenue Sharing Trust Fund, on a quarterly basis, in the following amounts:



Number of Licensed Devices               Fee Per Device Per Annum


1-350                                    $0


351-750                                  $900


751-1250                                 $1950


1251-2000                                $4350



(3) Licenses to use Gaming Devices shall be awarded as follows:

(i) First, Compact Tribes with no Existing Devices (i.e., the number of Gaming Devices
operated by a Compact Tribe as of September 1, 1999) may draw up to 150 licenses for a
total of 500 Gaming Devices;

(ii) Next, Compact Tribes authorized under Section 4.3.1 to operate up to and including
500 Gaming Devices as of September 1, 1999 (including tribes, if any, that have acquired
licenses through subparagraph (i)), may draw up to an additional 500 licenses, to a total
of 1000 Gaming Devices;

(iii) Next, Compact Tribes operating between 501 and 1000 Gaming Devices as of
September 1, 1999 (including tribes, if any, that have acquired licenses through
subparagraph (ii)), shall be entitled to draw up to an additional 750 Gaming Devices;

(iv) Next, Compact Tribes authorized to operate up to and including 1500 gaming devices
(including tribes, if any, that have acquired licenses through subparagraph (iii)), shall be
entitled to draw up to an additional 500 licenses, for a total authorization to operate up to
2000 gaming devices.

(v) Next, Compact Tribes authorized to operate more than 1500 gaming devices
(including tribes, if any, that have acquired licenses through subparagraph (iv))., shall be
entitled to draw additional licenses up to a total authorization to operate up to 2000
gaming devices.

(vi). After the first round of draws, a second and subsequent round(s) shall be conducted
utilizing the same order of priority as set forth above. Rounds shall continue until tribes
cease making draws, at which time draws will be discontinued for one month or until the
Trustee is notified that a tribe desires to acquire a license, whichever last occurs.

(e) As a condition of acquiring licenses to operate Gaming Devices, a non-refundable
one-time pre-payment fee shall be required in the amount of $1,250 per Gaming Device
being licensed, which fees shall be deposited in the Revenue Sharing Trust Fund. The
license for any Gaming Device shall be canceled if the Gaming Device authorized by the
license is not in commercial operation within twelve months of issuance of the license.

Sec. 4.3.2.3. The Tribe shall not conduct any Gaming Activity authorized by this
Compact if the Tribe is more than two quarterly contributions in arrears in its license fee
payments to the Revenue Sharing Trust Fund.

Sec. 4.3.3. If requested to do so by either party after March 7, 2003, but not later than
March 31, 2003, the parties will promptly commence negotiations in good faith with the
Tribe concerning any matters encompassed by Sections 4.3.1 and Section 4.3.2, and their
subsections.

SEC. 5.0 REVENUE DISTRIBUTION

Sec. 5.1. (a) The Tribe shall make contributions to the Special Distribution Fund created
by the Legislature, in accordance with the following schedule, but only with respect to the
number of Gaming Devices operated by the Tribe on September 1, 1999:

 Number of Terminals in Quarterly Device        Percent of Average Gaming Device Net
 Base                                           Win

 1 - 200                                        0%

 201 ­ 500                                      7%
 501 ­ 1000                                     7% applied to the excess over 200
                                                terminals, up to 500 terminals, plus 10%
                                                applied to terminals over 500 terminals,
                                                up to 1000 terminals.

 1000+                                          7% applied to excess over 200, up to 500
                                                terminals, plus 10% applied to terminals
                                                over 500, up to 1000 terminals, plus 13%
                                                applied to the excess above 1000
                                                terminals.




(b) The first transfer to the Special Distribution Fund of its share of the gaming revenue
shall made at the conclusion of the first calendar quarter following the second anniversary
date of the effective date of this Compact.

Sec. 5.2. Use of funds. The State's share of the Gaming Device revenue shall be placed in
the Special Distribution Fund, available for appropriation by the Legislature for the
following purposes: (a) grants, including any administrative costs, for programs designed
to address gambling addiction; (b) grants, including any administrative costs, for the
support of state and local government agencies impacted by tribal government gaming;
(c) compensation for regulatory costs incurred by the State Gaming Agency and the state
Department of Justice in connection with the implementation and administration of the
Compact; (d) payment of shortfalls that may occur in the Revenue Sharing Trust Fund;
and (e) any other purposes specified by the Legislature. It is the intent of the parties that
Compact Tribes will be consulted in the process of identifying purposes for grants made
to local governments.

Sec. 5.3. (a) The quarterly contributions due under Section 5.1 shall be determined and
made not later than the thirtieth (30th ) day following the end of each calendar quarter by
first determining the total number of all Gaming Devices operated by a Tribe during a
given quarter ("Quarterly Device Base"). The "Average Device Net Win" is calculated by
dividing the total Net Win from all terminals during the quarter by the Quarterly Terminal
Base.

(b) Any quarterly contribution not paid on or before the date on which such amount is due
shall be deemed overdue. If any quarterly contribution under Section 5.1 is overdue to the
Special Distribution Fund, the Tribe shall pay to the Special Distribution Fund, in
addition to the overdue quarterly contribution, interest on such amount from the date the
quarterly contribution was due until the date such quarterly contribution (together with
interest thereon) was actually paid at the rate of 1.0% per month or the maximum rate
permitted by state law, whichever is less. Entitlement to such interest shall be in addition
to any other remedies the State may have.

(c) At the time each quarterly contribution is made, the Tribe shall submit to the State a
report (the "Quarterly Contribution Report") certified by an authorized representative of
the Tribe reflecting the Quarterly Device Base, the Net Win from all terminals in the
Quarterly Device Base (broken down by Gaming Device), and the Average Device Net
Win.

(d) If the State causes an audit to be made pursuant to subdivision (c), and the Average
Device Net Win for any quarter as reflected on such quarter's Quarterly Contribution
Reports is found to be understated, the State will promptly notify the Tribe, and the Tribe
will either accept the difference or provide a reconciliation satisfactory to the State. If the
Tribe accepts the difference or does not provide a reconciliation satisfactory to the State,
the Tribe must immediately pay the amount of the resulting deficiencies in the quarterly
contribution plus interest on such amounts from the date they were due at the rate of 1.0%
per month or the maximum rate permitted by applicable law, whichever is less.

(e) The Tribe shall not conduct Class III gaming if more than two quarterly contributions
to the Special Distribution Fund are overdue.

Sec. 6.0. LICENSING.

Sec. 6.1. Gaming Ordinance and Regulations. All Gaming Activities conducted under this
Gaming Compact shall, at a minimum, comply with a Gaming Ordinance duly adopted
by the Tribe and approved in accordance with IGRA, and with all rules, regulations,
procedures, specifications, and standards duly adopted by the Tribal Gaming Agency.

Sec. 6.2. Tribal Ownership, Management, and Control of Gaming Operation. The
Gaming Operations authorized under this Gaming Compact shall be owned solely by the
Tribe.

Sec. 6.3. Prohibition Regarding Minors. (a) Except as provided in subdivision (b), the
Tribe shall not permit persons under the age of 18 years to be present in any room in
which Class III Gaming Activities are being conducted unless the person is en-route to a
non-gaming area of the Gaming Facility.

(b) If the Tribe permits the consumption of alcoholic beverages in the Gaming Facility,
the Tribe shall prohibit persons under the age of 21 years from being present in any area
in which Class III gaming activities are being conducted and in which alcoholic
beverages may be consumed, to the extent required by the state Department of Alcoholic
Beverage Control.

Sec. 6.4. Licensing Requirements and Procedures.

Sec. 6.4.1. Summary of Licensing Principles. All persons in any way connected with the
Gaming Operation or Facility who are required to be licensed or to submit to a
background investigation under IGRA, and any others required to be licensed under this
Gaming Compact, including, but not limited to, all Gaming Employees and Gaming
Resource Suppliers, and any other person having a significant influence over the Gaming
Operation must be licensed by the Tribal Gaming Agency. The parties intend that the
licensing process provided for in this Gaming Compact shall involve joint cooperation
between the Tribal Gaming Agency and the State Gaming Agency, as more particularly
described herein.

Sec. 6.4.2. Gaming Facility. (a) The Gaming Facility authorized by this Gaming Compact
shall be licensed by the Tribal Gaming Agency in conformity with the requirements of
this Gaming Compact, the Tribal Gaming Ordinance, and IGRA. The license shall be
reviewed and renewed, if appropriate, every two years thereafter. Verification that this
requirement has been met shall be provided by the Tribe to the State Gaming Agency
every two years. The Tribal Gaming Agency's certification to that effect shall be posted
in a conspicuous and public place in the Gaming Facility at all times.

(b) In order to protect the health and safety of all Gaming Facility patrons, guests, and
employees, all Gaming Facilities of the Tribe constructed after the effective date of this
Gaming Compact, and all expansions or modifications to a Gaming Facility in operation
as of the effective date of this Compact, shall meet the building and safety codes of the
Tribe, which, as a condition for engaging in that construction, expansion, modification, or
renovation, shall amend its exis ting building and safety codes if necessary, or enact such
codes if there are none, so that they meet the standards of either the building and safety
codes of any county within the boundaries of which the site of the Facility is located, or
the Uniform Building Codes, including all uniform fire, plumbing, electrical, mechanical,
and related codes then in effect provided that nothing herein shall be deemed to confer
jurisdiction upon any county or the State with respect to any reference to such building
and safety codes. Any such construction, expansion or modification will also comply with
the federal Americans with Disabilities Act, P.L. 101-336, as amended, 42 U.S.C. §
12101 et seq.

(c) Any Gaming Facility in which gaming authorized by this Gaming Compact is
conducted shall be issued a certificate of occupancy by the Tribal Gaming Agency prior
to occupancy if it was not used for any Gaming Activities under IGRA prior to the
effective date of this Gaming Compact, or, if it was so used, within one year thereafter.
The issuance of this certificate shall be reviewed for continuing compliance every two
years thereafter. Inspections by qualified building and safety experts shall be conducted
under the direction of the Tribal Gaming Agency as the basis for issuing any certificate
hereunder. The Tribal Gaming Agency shall determine and certify that, as to new
construction or new use for gaming, the Facility meets the Tribe's building and safety
code, or, as to facilities or portions of facilities that were used for the Tribe's Gaming
Activities prior to this Gaming Compact, that the facility or portions thereof do not
endanger the health or safety of occupants or the integrity of the Gaming Operation. The
Tribe will not offer Class III gaming in a Facility that is constructed or maintained in a
manner that endangers the health or safety of occupants or the integrity of the gaming
operation.

(d) The State shall designate an agent or agents to be given reasonable notice of each
inspection by the Tribal Gaming Agency's experts, which state agents may accompany
any such inspection. The Tribe agrees to correct any Gaming Facility condition noted in
an inspection that does not meet the standards set forth in subdivisions (b) and (c). The
Tribal Gaming Agency and the State's designated agent or agents shall exchange any
reports of an inspection within 10 days after completion of the report, which reports shall
also be separately and simultaneously forwarded by both agencies to the Tribal
Chairperson. Upon certification by the Tribal Gaming Agency's experts that a Gaming
Facility meets applicable standards, the Tribal Gaming Agency shall forward the experts'
certification to the State within 10 days of issuance. If the State's agent objects to that
certification, the Tribe shall make a good faith effort to address the State's concerns, but if
the State does not withdraw its objection, the matter will be resolved in accordance with
the dispute resolution provisions of Section 9.0.

Sec. 6.4.3. Suitability Standard Regarding Gaming Licenses. (a) In reviewing an
application for a gaming license, and in addition to any standards set forth in the Tribal
Gaming Ordinance, the Tribal Gaming Agency shall consider whether issuance of the
license is inimical to public health, safety, or welfare, and whether issuance of the license
will undermine public trust that the Tribe's Gaming Operations, or tribal government
gaming generally, are free from criminal and dishonest elements and would be conducted
honestly. A license may not be issued unless, based on all information and documents
submitted, the Tribal Gaming Agency is satisfied that the applicant is all of the following,
in addition to any other criteria in IGRA or the Tribal Gaming Ordinance:

(a) A person of good character, honesty, and integrity.

(b) A person whose prior activities, criminal record (if any), reputation, habits, and
associations do not pose a threat to the public interest or to the effective regulation and
control of gambling, or create or enhance the dangers of unsuitable, unfair, or illegal
practices, methods, or activities in the conduct of gambling, or in the carrying on of the
business and financial arrangements incidental thereto.

(c) A person who is in all other respects qualified to be licensed as provided in this
Gaming Compact, IGRA, the Tribal Gaming Ordinance, and any other criteria adopted by
the Tribal Gaming Agency or the Tribe. An applicant shall not be found to be unsuitable
solely on the ground that the applicant was an employee of a tribal gaming operation in
California that was conducted prior to the effective date of this Compact.

Sec. 6.4.4. Gaming Employees. (a) Every Gaming Employee shall obtain, and thereafter
maintain current, a valid tribal gaming license, which shall be subject to biennial renewal;
provided that in accordance with Section 6.4.9, those persons may be employed on a
temporary or conditional basis pending completion of the licensing process.

(b) Except as provided in subdivisions (c) and (d), the Tribe will not employ or continue
to employ, any person whose application to the State Gaming Agency for a determination
of suitability, or for a renewal of such a determination, has been denied or has expired
without renewal.

(c) Notwithstanding subdivision (a), the Tribe may retain in its employ a person whose
application for a determination of suitability, or for a renewal of such a determination, has
been denied by the State Gaming Agency, if: (i) the person holds a valid and current
license issued by the Tribal Gaming Agency that must be renewed at least biennially; (ii)
the denial of the application by the State Gaming Agency is based solely on activities,
conduct, or associations that antedate the filing of the person's initial application to the
State Gaming Agency for a determination of suitability; (iii) the person is not an
employee or agent of any other gaming operation; and (iv) the person has been in the
continuous employ of the Tribe for at least three years prior to the effective date of this
Compact.

(d) Notwithstanding subdivision (a), the Tribe may employ or retain in its employ a
person whose application for a determination of suitability, or for a renewal of such a
determination, has been denied by the State Gaming Agency, if the person is an enrolled
member of the Tribe, as defined in this subdivision, and if (i) the person holds a valid and
current license issued by the Tribal Gaming Agency that must be renewed at least
biennially; (ii) the denial of the application by the State Gaming Agency is based solely
on activities, conduct, or associations that antedate the filing of the person's initial
application to the State Gaming Agency for a determination of suitability; and (iii) the
person is not an employee or agent of any other gaming operation. For purposes of this
subdivision, "enrolled member" means a person who is either (a) certified by the Tribe as
having been a member of the Tribe for at least five (5) years, or (b) a holder of
confirmation of membership issued by the Bureau of Indian Affairs.

(e) Nothing herein shall be construed to relieve any person of the obligation to apply for a
renewal of a determination of suitability as required by Section 6.5.6.

Sec. 6.4.5. Gaming Resource Supplier. Any Gaming Resource Supplier who, directly or
indirectly, provides, has provided, or is deemed likely to provide at least twenty-five
thousand dollars ($25,000) in Gaming Resources in any 12- month period, or who has
received at least twenty-five thousand dollars ($25,000) in any consecutive 12- month
period within the 24- month period immediately preceding application, shall be licensed
by the Tribal Gaming Agency prior to the sale, lease, or distribution, or further sale, lease,
or distribution, of any such Gaming Resources to or in connection with the Tribe's
Operation or Facility. These licenses shall be reviewed at least every two years for
continuing compliance. In connection with such a review, the Tribal Gaming Agency
shall require the Supplier to update all information provided in the previous application.
For purposes of Section 6.5.2, such a review shall be deemed to constitute an application
for renewal. The Tribe shall not enter into, or continue to make payments pursuant to, any
contract or agreement for the provision of Gaming Resources with any person whose
application to the State Gaming Agency for a determination of suitability has been denied
or has expired without renewal. Any agreement between the Tribe and a Gaming
Resource Supplier shall be deemed to include a provision for its termination without
further liability on the part of the Tribe, except for the bona fide repayment of all
outstanding sums (exclusive of interest) owed as of, or payment for services or materials
received up to, the date of termination, upon revocation or non-renewal of the Supplier's
license by the Tribal Gaming Agency based on a determination of unsuitability by the
State Gaming Agency.

Sec. 6.4.6. Financial Sources. Any person extending financing, directly or indirectly, to
the Tribe's Gaming Facility or Gaming Operation shall be licensed by the Tribal Gaming
Agency prior to extending that financing, provided that any person who is extending
financing at the time of the execution of this Compact shall be licensed by the Tribal
Gaming Agency within ninety (90) days of such execution. These licenses shall be
reviewed at least every two years for continuing compliance. In connection with such a
review, the Tribal Gaming Agency shall require the Financial Source to update all
information provided in the previous application. For purposes of Section 6.5.2, such a
review shall be deemed to constitute an application for renewal. Any agreement between
the Tribe and a Financial Source shall be deemed to include a provision for its
termination without further liability on the part of the Tribe, except for the bona fide
repayment of all outstanding sums (exclusive of interest) owed as of the date of
termination, upon revocation or non-renewal of the Financial Source's license by the
Tribal Gaming Agency based on a determination of unsuitability by the State Gaming
Agency. The Tribe shall not enter into, or continue to make payments pursuant to, any
contract or agreement for the provision of financing with any person whose application to
the State Gaming Agency for a determination of suitability has been denied or has
expired without renewal. A Gaming Resource Supplier who provides financing
exclusively in connection with the sale or lease of Gaming Resources obtained from that
Supplier may be licensed solely in accordance with licensing procedures applicable, if at
all, to Gaming Resource Suppliers. The Tribal Gaming Agency may, at its discretion,
exclude from the licensing requirements of this section, financing provided by a federally
regulated or state-regulated bank, savings and loan, or other federally- or state-regulated
lending institution; or any agency of the federal, state, or local government; or any
investor who, alone or in conjunction with others, holds less than 10% of any outstanding
indebtedness evidenced by bonds issued by the Tribe.

Sec. 6.4.7. Processing Tribal Gaming License Applications. Each applicant for a tribal
gaming license shall submit the completed application along with the required
information and an application fee, if required, to the Tribal Gaming Agency in
accordance with the rules and regulations of that agency. At a minimum, the Tribal
Gaming Agency shall require submission and consideration of all information required
under IGRA, including Section 556.4 of Title 25 of the Code of Federal Regulations, for
licensing primary management officials and key employees. For applicants who are
business entities, these licensing provisions shall apply to the entity as well as: (i) each of
its officers and directors; (ii) each of its principal management employees, including any
chief executive officer, chief financial officer, chief operating officer, and general
manager; (iii) each of its owners or partners, if an unincorporated business; (iv) each of
its shareholders who owns more than 10 percent of the shares of the corporation, if a
corporation; and (v) each person or entity (other than a financial institution that the Tribal
Gaming Agency has determined does not require a license under the preceding section)
that, alone or in combination with others, has provided financing in connection with any
gaming authorized under this Gaming Compact, if that person or entity provided more
than 10 percent of (a) the start-up capital, (b) the operating capital over a 12- month
period, or (c) a combination thereof. For purposes of this Section, where there is any
commonality of the characteristics identified in clauses (i) to (v), inclusive, between any
two or more entities, those entities may be deemed to be a single entity. Nothing herein
precludes the Tribe or Tribal Gaming Agency from requiring more stringent licensing
requirements.

Sec. 6.4.8. Background Investigations of Applicants. The Tribal Gaming Agency shall
conduct or cause to be conducted all necessary background investigations reasonably
required to determine that the applicant is qualified for a gaming license under the
standards set forth in Section 6.4.3, and to fulfill all requirements for licensing under
IGRA, the Tribal Gaming Ordinance, and this Gaming Compact. The Tribal Gaming
Agency shall not issue other than a temporary license until a determination is made that
those qualifications have been met. In lieu of completing its own background
investigation, and to the extent that doing so does not conflict with or violate IGRA or the
Tribal Gaming Ordinance, the Tribal Gaming Agency may contract with the State
Gaming Agency for the conduct of background investigations, may rely on a state
certification of non-objection previously issued under a gaming compact involving
another tribe, or may rely on a State gaming license previously issued to the applicant, to
fulfill some or all of the Tribal Gaming Agency's background investigation obligation. An
applicant for a tribal gaming license shall be required to provide releases to the State
Gaming Agency to make available to the Tribal Gaming Agency background information
regarding the applicant. The State Gaming Agency shall cooperate in furnishing to the
Tribal Gaming Agency that information, unless doing so would violate any agreement the
State Gaming Agency has with a source of the information other than the applicant, or
would impair or impede a criminal investigation, or unless the Tribal Gaming Agency
cannot provide sufficient safeguards to assure the State Gaming Agency that the
information will remain confidential or that provision of the information would violate
state or federal law. If the Tribe adopts an ordinance confirming that Article 6
(commencing with section 11140) of Chapter 1 of Title 1 of Part 4 of the California Penal
Code is applicable to members, investigators, and staff of the Tribal Gaming Agency, and
those members, investigators, and staff thereafter comply with that ordinance, then, for
purposes of carrying out its obligations under this Section, the Tribal Gaming Agency
shall be considered to be an entity entitled to receive state summary criminal history
information within the meaning of subdivision (b)(12) of section 11105 of the California
Penal Code. The California Department of Justice shall provide services to the Tribal
Gaming Agency through the California Law Enforcement Telecommunications System
(CLETS), subject to a determination by the CLETS advisory committee that the Tribal
Gaming Agency is qualified for receipt of such services, and on such terms and
conditions as are deemed reasonable by that advisory committee.

Sec. 6.4.9. Temporary Licensing of Gaming Employees. Notwithstanding anything herein
to the contrary, if the applicant has completed a license application in a manner
satisfactory to the Tribal Gaming Agency, and that agency has conducted a preliminary
background investigation, and the investigation or other information held by that agency
does not indicate that the applicant has a criminal history or other information in his or
her background that would either automatically disqualify the applicant from obtaining a
license or cause a reasonable person to investigate further before issuing a license, or is
otherwise unsuitable for licensing, the Tribal Gaming Agency may issue a temporary
license and may impose such specific conditions thereon pending completion of the
applicant's background investigation, as the Tribal Gaming Agency in its sole discretion
shall determine. Special fees may be required by the Tribal Gaming Agency to issue or
maintain a temporary license. A temporary license shall remain in effect until suspended
or revoked, or a final determination is made on the application. At any time after issuance
of a temporary license, the Tribal Gaming Agency may suspend or revoke it in
accordance with Sections 6.5.1 or 6.5.5, and the State Gaming Agency may request
suspension or revocation in accordance with subdivision (d) of Section 6.5.6. Nothing
herein shall be construed to relieve the Tribe of any obligation under Part 558 of Title 25
of the Code of Federal Regulations.

Sec. 6.5. Gaming License Issuance. Upon completion of the necessary background
investigation, the Tribal Gaming Agency may issue a license on a conditional or
unconditional basis. Nothing herein shall create a property or other right of an applicant
in an opportunity to be licensed, or in a license itself, both of which shall be considered to
be privileges granted to the applicant in the sole discretion of the Tribal Gaming Agency.

Sec. 6.5.1. Denial, Suspension, or Revocation of Licenses. (a) Any application for a
gaming license may be denied, and any license issued may be revoked, if the Tribal
Gaming Agency determines that the application is incomplete or deficient, or if the
applicant is determined to be unsuitable or otherwise unqualified for a gaming license.
Pending consideration of revocation, the Tribal Gaming Agency may suspend a license in
accordance with Section 6.5.5. All rights to notice and hearing shall be governed by tribal
law, as to which the applicant will be notified in writing along with notice of an intent to
suspend or revoke the license.

(b) (i) Except as provided in paragraph (ii) below, upon receipt of notice that the State
Gaming Agency has determined that a person would be unsuitable for licensure in a
gambling establishment subject to the jurisdiction of the State Gaming Agency, the Tribal
Gaming Agency shall promptly revoke any license that has theretofore been issued to the
person; provided that the Tribal Gaming Agency may, in its discretion, re- issue a license
to the person following entry of a final judgment reversing the determination of the State
Gaming Agency in a proceeding in state court conducted pursuant to section 1085 of the
California Civil Code.

(ii) Notwithstanding a determination of unsuitability by the State Gaming Agency, the
Tribal Gaming Agency may, in its discretion, decline to revoke a tribal license issued to a
person employed by the Tribe pursuant to Section 6.4.4(c) or Section 6.4.4(d).

Sec. 6.5.2. Renewal of Licenses; Extensions; Further Investigation. The term of a tribal
gaming license shall not exceed two years, and application for renewal of a license must
be made prior to its expiration. Applicants for renewal of a license shall provide updated
material as requested, on the appropriate renewal forms, but, at the discretion of the
Tribal Gaming Agency, may not be required to resubmit historical data previously
submitted or that is otherwise available to the Tribal Gaming Agency. At the discretion of
the Tribal Gaming Agency, an additional background investigation may be required at
any time if the Tribal Gaming Agency determines the need for further information
concerning the applicant's continuing suitability or eligibility for a license. Prior to
renewing a license, the Tribal Gaming Agency shall deliver to the State Gaming Agency
copies of all information and documents received in connection with the application for
renewal.

Sec. 6.5.3. Identification Cards. The Tribal Gaming Agency shall require that all persons
who are required to be licensed wear, in plain view at all times while in the Gaming
Facility, identification badges issued by the Tribal Gaming Agency. Identification badges
must display information including, but not limited to, a photograph and an identification
number that is adequate to enable agents of the Tribal Gaming Agency to readily identify
the person and determine the validity and date of expiration of his or her license.

Sec. 6.5.4. Fees for Tribal License. The fees for all tribal licenses shall be set by the
Tribal Gaming Agency.

Sec. 6.5.5. Suspension of Tribal License. The Tribal Gaming Agency may summarily
suspend the license of any employee if the Tribal Gaming Agency determines that the
continued licensing of the person or entity could constitute a threat to the public health or
safety or may violate the Tribal Gaming Agency's licensing or other standards. Any right
to notice or hearing in regard thereto shall be governed by Tribal law.

Sec. 6.5.6. State Certification Process. (a) Upon receipt of a completed license application
and a determination by the Tribal Gaming Agency that it intends to issue the earlier of a
temporary or permanent license, the Tribal Gaming Agency shall transmit to the State
Gaming Agency a notice of intent to license the applicant, together with all of the
following: (i) a copy of all tribal license application materials and information received
by the Tribal Gaming Agency from the applicant; (ii) an original set of fingerprint cards;
(iii) a current photograph; and (iv) except to the extent waived by the State Gaming
Agency, such releases of information, waivers, and other completed and executed forms
as have been obtained by the Tribal Gaming Agency. Except for an applicant for
licensing as a non-key Gaming Employee, as defined by agreement between the Tribal
Gaming Agency and the State Gaming Agency, the Tribal Gaming Agency shall require
the applicant also to file an application with the State Gaming Agency, prior to issuance
of a temporary or permanent tribal gaming license, for a determination of suitability for
licensure under the California Gambling Control Act. Investigation and disposition of that
application shall be governed entirely by state law, and the State Gaming Agency shall
determine whether the applicant would be found suitable for licensure in a gambling
establishment subject to that Agency's jurisdiction. Additional information may be
required by the State Gaming Agency to assist it in its background investigation, provided
that such State Gaming Agency requirement shall be no greater than that which may be
required of applicants for a State gaming license in connection with nontribal gaming
activities and at a similar level of participation or employment. A determination of
suitability is valid for the term of the tribal license held by the applicant, and the Tribal
Gaming Agency shall require a licensee to apply for renewal of a determination of
suitability at such time as the licensee applies for renewal of a tribal gaming license. The
State Gaming Agency and the Tribal Gaming Agency (together with tribal gaming
agencies under other gaming compacts) shall cooperate in developing standard licensing
forms for tribal gaming license applicants, on a statewide basis, that reduce or eliminate
duplicative or excessive paperwork, which forms and procedures shall take into account
the Tribe's requirements under IGRA and the expense thereof.

(b) Background Investigations of Applicants. Upon receipt of completed license
application information from the Tribal Gaming Agency, the State Gaming Agenc y may
conduct a background investigation pursuant to state law to determine whether the
applicant would be suitable to be licensed for association with a gambling establishment
subject to the jurisdiction of the State Gaming Agency. If further investigatio n is required
to supplement the investigation conducted by the Tribal Gaming Agency, the applicant
will be required to pay the statutory application fee charged by the State Gaming Agency
pursuant to California Business and Professions Code section 19941(a), but any deposit
requested by the State Gaming Agency pursuant to section 19855 of that Code shall take
into account reports of the background investigation already conducted by the Tribal
Gaming Agency and the NIGC, if any. Failure to pay the application fee or deposit may
be grounds for denial of the application by the State Gaming Agency. The State Gaming
Agency and Tribal Gaming Agency shall cooperate in sharing as much background
information as possible, both to maximize investigative efficiency and thoroughness, and
to minimize investigative costs. Upon completion of the necessary background
investigation or other verification of suitability, the State Gaming Agency shall issue a
notice to the Tribal Gaming Agency certifying that the State has determined that the
applicant would be suitable, or that the applicant would be unsuitable, for licensure in a
gambling establishment subject to the jurisdiction of the State Gaming Agency and, if
unsuitable, stating the reasons therefor.

(c) The Tribe shall mo nthly provide the State Gaming Agency with the name, badge
identification number, and job descriptions of all non-key Gaming Employees.

(d) Prior to denying an application for a determination of suitability, the State Gaming
Agency shall notify the Tribal Gaming Agency and afford the Tribe an opportunity to be
heard. If the State Gaming Agency denies an application for a determination of
suitability, that Agency shall provide the applicant with written notice of all appeal rights
available under state law.

Sec. 7.0. COMPLIANCE ENFORCEMENT.

Sec. 7.1. On-Site Regulation. It is the responsibility of the Tribal Gaming Agency to
conduct on-site gaming regulation and control in order to enforce the terms of this
Gaming Compact, IGRA, and the Tribal Gaming Ordinance with respect to Gaming
Operation and Facility compliance, and to protect the integrity of the Gaming Activities,
the reputation of the Tribe and the Gaming Operation for honesty and fairness, and the
confidence of patrons that tribal government gaming in California meets the highest
standards of regulation and internal controls. To meet those responsibilities, the Tribal
Gaming Agency shall adopt and enforce regulations, procedures, and practices as set
forth herein.

Sec. 7.2. Investigation and Sanctions. The Tribal Gaming Agency shall investigate any
reported violation of this Gaming Compact and shall require the Gaming Operation to
correct the violation upon such terms and conditions as the Tribal Gaming Agency
determines are necessary. The Tribal Gaming Agency shall be empowered by the Tribal
Gaming Ordinance to impose fines or other sanctions within the jurisdiction of the Tribe
against gaming licensees or other persons who interfere with or violate the Tribe's gaming
regulatory requirements and obligations under IGRA, the Tribal Gaming Ordinance, or
this Gaming Compact. The Tribal Gaming Agency shall report significant or continued
violations of this Compact or failures to comply with its orders to the State Gaming
Agency.

Sec. 7.3. Assistance by State Gaming Agency. The Tribe may request the assistance of
the State Gaming Agency whenever it reasonably appears that such assistance may be
necessary to carry out the purposes described in Section 7.1, or otherwise to protect
public health, safety, or welfare. If requested by the Tribe or Tribal Gaming Agency, the
State Gaming Agency shall provide requested services to ensure proper compliance with
this Gaming Compact. The State shall be reimbursed for its actual and reasonable costs of
that assistance, if the assistance required expenditure of extraordinary costs.

Sec. 7.4. Access to Premises by State Gaming Agency; Notification; Inspections.
Notwithstanding that the Tribe has the primary responsibility to administer and enforce
the regulatory requireme nts of this Compact, the State Gaming Agency shall have the
right to inspect the Tribe's Gaming Facility with respect to Class III Gaming Activities
only, and all Gaming Operation or Facility records relating thereto, subject to the
following conditions:

Sec. 7.4.1. Inspection of public areas of a Gaming Facility may be made at any time
without prior notice during normal Gaming Facility business hours.

Sec. 7.4.2. Inspection of areas of a Gaming Facility not normally accessible to the public
may be made at any time during normal Gaming Facility business hours, immediately
after the State Gaming Agency's authorized inspector notifies the Tribal Gaming Agency
of his or her presence on the premises, presents proper identification, and requests access
to the non-public areas of the Gaming Facility. The Tribal Gaming Agency, in its sole
discretion, may require a member of the Tribal Gaming Agency to accompany the State
Gaming Agency inspector at all times that the State Gaming Agency inspector is in a
non-public area of the Gaming Facility. If the Tribal Gaming Agency imposes such a
requirement, it shall require such member to be available at all times for those purposes
and shall ensure that the member has the ability to gain immediate access to all non-
public areas of the Gaming Facility. Nothing in this Compact shall be construed to limit
the State Gaming Agency to one inspector during inspections.

Sec. 7.4.3. (a) Inspection and copying of Gaming Operation papers, books, and records
may occur at any time, immediately after notice to the Tribal Gaming Agency, during the
normal hours of the Gaming Facility's business office, provided that the inspection and
copying of those papers, books or records shall not interfere with the normal functioning
of the Gaming Operation or Facility. Notwithstanding any other provision of California
law, all information and records that the State Gaming Agency obtains, inspects, or
copies pursuant to this Gaming Compact shall be, and remain, the property solely of the
Tribe; provided that such records and copies may be retained by the State Gaming
Agency as reasonably necessary for completion of any investigation of the Tribe's
compliance with this Compact.

(b)(i) The State Gaming Agency will exercise utmost care in the preservation of the
confidentiality of any and all information and documents received from the Tribe, and
will apply the highest standards of confidentiality expected under state law to preserve
such information and documents from disclosure. The Tribe may avail itself of any and
all remedies under state law for improper disclosure of information or documents. To the
extent reasonably feasible, the State Gaming Agency will consult with representatives of
the Tribe prior to disclosure of any documents received from the Tribe, or any documents
compiled from such documents or from information received from the Tribe, including
any disclosure compelled by judicial process, and, in the case of any disclosure
compelled by judicial process, will endeavor to give the Tribe immediate notice of the
order compelling disclosure and a reasonable opportunity to interpose an objection
thereto with the court.

(ii) The Tribal Gaming Agency and the State Gaming Agency shall confer and agree
upon protocols for release to other law enforcement agencies of information obtained
during the course of background investigations.

(c) Records received by the State Gaming Agency from the Tribe in compliance with this
Compact, or information compiled by the State Gaming Agency from those records, shall
be exempt from disclosure under the California Public Records Act.

Sec. 7.4.4. Notwithstanding any other provision of this Compact, the State Gaming
Agency shall not be denied access to papers, books, records, equipment, or places where
such access is reasonably necessary to ensure compliance with this Compact.

Sec. 7.4.5. (a) Subject to the provisions of subdivision (b), the Tribal Gaming Agency
shall not permit any Gaming Device to be transported to or from the Tribe's land except
in accordance with procedures established by agreement between the State Gaming
Agency and the Tribal Gaming Agency and upon at least 10 days' notice to the Sheriff's
Department for the county in which the land is located.

(b) Transportation of a Gaming Device from the Gaming Facility within California is
permissible only if: (i) The final destination of the device is a gaming facility of any tribe
in California that has a compact with the State; (ii) The final destination of the device is
any other state in which possessio n of the device or devices is made lawful by state law
or by tribal-state compact; (iii) The final destination of the device is another country, or
any state or province of another country, wherein possession of the device is lawful; or
(iv) The final destination is a location within California for testing, repair, maintenance,
or storage by a person or entity that has been licensed by the Tribal Gaming Agency and
has been found suitable for licensure by the State Gaming Agency.

(c) Gaming Devices transported off the Tribe's land in violation of this Section 7.4.5 or in
violation of any permit issued pursuant thereto is subject to summary seizure by
California peace officers.

Sec. 8.0. RULES AND REGULATIONS FOR THE OPERATION AND
MANAGEMENT OF THE TRIBAL GAMING OPERATION.

Sec. 8.1. Adoption of Regulations for Operation and Management; Minimum Standards.
In order to meet the goals set forth in this Gaming Compact and required of the Tribe by
law, the Tribal Gaming Agency shall be vested with the authority to promulgate, and
shall promulgate, at a minimum, rules and regulations or specifications governing the
following subjects, and to ensure their enforcement in an effective manner:

Sec. 8.1.1. The enforcement of all relevant laws and rules with respect to the Gaming
Operation and Facility, and the power to conduct investigations and hearings with respect
thereto, and to any other subject within its jurisdiction.

Sec. 8.1.2. Ensuring the physical safety of Gaming Operation patrons and employees, and
any other person while in the Gaming Facility. Nothing herein shall be construed to make
applicable to the Tribe any state laws, regulations, or standards governing the use of
tobacco.

Sec. 8.1.3. The physical safeguarding of assets transported to, within, and from the
Gaming Facility.

Sec. 8.1.4. The prevention of illegal activity from occurring within the Gaming Facility or
with regard to the Gaming Operation, including, but not limited to, the maintenance of
employee procedures and a surveillance system as provided below.

Sec. 8.1.5. The recording of any and all occurrences within the Gaming Facility that
deviate from normal operating policies and procedures (hereafter "incidents"). The
procedure for recording incidents shall: (1) specify that security personnel record all
incidents, regardless of an employee's determination that the incident may be immaterial
(all incidents shall be identified in writing); (2) require the assignment of a sequential
number to each report; (3) provide for permanent reporting in indelible ink in a bound
notebook from which pages cannot be removed and in which entries are made on each
side of each page; and (4) require that each report include, at a minimum, all of the
following:

(a) The record number.

(b) The date.

(c) The time.

(d) The location of the incident.

(e) A detailed description of the incident.

(f) The persons involved in the incident.

(g) The security department employee assigned to the incident.

Sec. 8.1.6. The establishment of employee procedures designed to permit detection of any
irregularities, theft, cheating, fraud, or the like, consistent with industry practice.

Sec. 8.1.7. Maintenance of a list of persons barred from the Gaming Facility who,
because of their past behavior, criminal history, or association with persons or
organizations, pose a threat to the integrity of the Gaming Activities of the Tribe or to the
integrity of regulated gaming within the State.

Sec. 8.1.8. The conduct of an audit of the Gaming Operation, not less than annually, by
an independent certified public accountant, in accordance with the auditing and
accounting standards for audits of casinos of the American Institute of Certified Public
Accountants.

Sec. 8.1.9. Submission to, and prior approval, from the Tribal Gaming Agency of the
rules and regulations of each Class III game to be operated by the Tribe, and of any
changes in those rules and regulations. No Class III game may be played that has not
received Tribal Gaming Agency approval.

Sec. 8.1.10. Addressing all of the following:
(a) Maintenance of a copy of the rules, regulations, and procedures for each game as
played, including, but not limited to, the method of play and the odds and method of
determining amounts paid to winners;

(b) Specifications and standards to ensure that information regarding the method of play,
odds, and payoff determinations shall be visibly displayed or available to patrons in
written form in the Gaming Facility;

(c) Specifications ensuring that betting limits applicable to any gaming station shall be
displayed at that gaming station;

(d) Procedures ensuring that in the event of a patron dispute over the application of any
gaming rule or regulation, the matter shall be handled in accordance with, industry
practice and principles of fairness, pur suant to the