MODEL TRIBAL GAMING COMPACT

Between the [Name of Tribe]

and the STATE OF OKLAHOMA

This Compact is made and entered into by and between the [Name of Tribe], a federally
recognized Indian tribe (tribe), and the State of Oklahoma (state), with respect to the
operation of covered games (as defined herein) on the tribes Indian lands as defined by
the Indian Gaming Regulatory Act, 25 U.S.C., Section 2703(4).

Part 1. TITLE

This document shall be referred to as the [Name of Tribe] and State of Oklahoma
Gaming Compact.

Part 2. RECITALS

1. The tribe is a federally recognized tribal government possessing sovereign powers and
rights of self-government.
2. The State of Oklahoma is a state of the United States of America possessing the
sovereign powers and rights of a state.

3. The state and the tribe maintain a government-to government relationship, and this
Compact will help to foster mutual respect and understanding among Indians and non-
Indians.

4. The United States Supreme Court has long recognized the right of an Indian tribe to
regulate activity on lands within its jurisdiction.

5. The tribe desires to offer the play of covered games, as defined in paragraphs 5, 10, 11
and 12 of Part 3 of this Compact, as a means of generating revenues for purposes
authorized by the Indian Gaming Regulatory Act, 25 U.S.C., Section 2701, et seq.,
including without limitation the support of tribal governmental programs, such as health
care, housing, sewer and water projects, police, corrections, fire, judicial services,
highway and bridge construction, general assistance for tribal elders, day care for the
children, economic development, educational opportunities and other typical and
valuable governmental services and programs for tribal members.

6. The state recognizes that the positive effects of this Compact will extend beyond the
tribes lands to the tribes neighbors and surrounding communities and will generally
benefit all of Oklahoma. These positive effects and benefits may include not only those
described in paragraph 5 of this Part, but also may include increased tourism and related
economic development activities.

7. The tribe and the state jointly wish to protect their citizens from any criminal
involvement in the gaming operations regulated under this Compact.
Part 3. DEFINITIONS

As used in this Compact:

1. Adjusted gross revenues means the total receipts received from the play of all covered
games minus all prize payouts;

2. Annual oversight assessment means the assessment described in subsection B of Part

11 of this Compact;

3. Central computer means a computer to which player terminals are linked to allow
competition in electronic bonanza-style bingo games;

4. Compact means this Tribal Gaming Compact between the state and the tribe, entered
into pursuant to Sections 21 and 22 of the StateTribal Gaming Act;

5. Covered game means the following games conducted in accordance with the
standards, as applicable, set forth in Sections 11 through 18 of the State-Tribal Gaming
Act: an electronic bonanza-style bingo game, an electronic amusement game, an
electronic instant bingo game, nonhouse-banked card games; any other game, if the
operation of such game by a tribe would require a compact and if such game has been:
(i) approved by the Oklahoma Horse Racing Commission for use by an organizational
licensee, (ii) approved by state legislation for use by any person or entity, or (iii)
approved by amendment of the State-Tribal Gaming Act; and upon election by the tribe
by written supplement to this Compact, any Class II game in use by the tribe, provided
that no exclusivity payments shall be required for the operation of such Class II game;

6. Covered game employee means any individual employed by the enterprise or a third
party providing management services to the enterprise, whose responsibilities include the
rendering of services with respect to the operation, maintenance or management of
covered games. The term covered game employee includes, but is not limited to, the
following: managers and assistant managers; accounting personnel; surveillance and
security personnel; cashiers, supervisors, and floor personnel; cage personnel; and any
other person whose employment duties require or authorize access to areas of the facility
related to the conduct of covered games or the maintenance or storage of covered game
components. This shall not include upper level tribal employees or tribes elected officials
so long as such individuals are not directly involved in the operation, maintenance, or
management of covered game components. The enterprise may, at its discretion, include
other persons employed at or in connection with the enterprise within the definition of
covered game employee;

7. Documents means books, records, electronic, magnetic and computer media

documents and other writings and materials, copies thereof, and information contained
therein;

8. Effective date means the date on which the last of the conditions set forth in
subsection A of Part 15 of this Compact have been met;
9. Electronic accounting system means an electronic system that provides a secure
means to receive, store and access data and record critical functions and activities, as set
forth in the State-Tribal Gaming Act;

10. Electronic amusement game means a game that is played in an electronic

environment in which a players performance and opportunity for success can be
improved by skill that conforms to the standards set forth in the State-Tribal Gaming Act;

11. Electronic bonanza-style bingo game means a game played in an electronic

environment in which some or all of the numbers or symbols are drawn or electronically
determined before the electronic bingo cards for that game are sold that conforms to the
standards set forth in the State-Tribal Gaming Act;

12. Electronic instant bingo game means a game played in an electronic environment in
which a player wins if his or her electronic instant bingo card contains a combination of
numbers or symbols that was designated in advance of the game as a winning
combination. There may be multiple winning combinations in each game and multiple
winning cards that conform to the standards set forth in the State-Tribal Gaming Act;

13. Enterprise means the tribe or the tribal agency or section of tribal management with
direct responsibility for the conduct of covered games, the tribal business enterprise that
conducts covered games, or a person, corporation or other entity that has entered into a
management contract with the tribe to conduct covered games, in accordance with IGRA.
The names, addresses and identifying information of any covered game employees shall
be forwarded to the SCA at least annually. In any event, the tribe shall have the ultimate
responsibility for ensuring that the tribe or enterprise fulfills the responsibilities under
this Compact. For purposes of enforcement, the tribe is deemed to have made all
promises for the enterprise;

14. Facility means any building of the tribe in which the covered games authorized by
this Compact are conducted by the enterprise, located on Indian lands as defined by
IGRA. The tribe shall have the ultimate responsibility for ensuring that a facility
conforms to the Compact as required herein;

15. Game play credits means a method of representing value obtained from the exchange
of cash or cash equivalents, or earned as a prize, in connection with electronic gaming.
Game play credits may be redeemed for cash or a cash equivalent;

16. Player terminals means electronic or electromechanical terminals housed in cabinets

with input devices and video screens or electromechanical displays on which players play
electronic bonanza-style bingo games, electronic instant bingo games or electronic
amusement games;

17. Independent testing laboratory means a laboratory of national reputation that is

demonstrably competent and qualified to scientifically test and evaluate devices for
compliance with this Compact and to otherwise perform the functions assigned to it in
this Compact. An independent testing laboratory shall not be owned or controlled by the
tribe, the enterprise, an organizational licensee as defined in the State-Tribal Gaming Act,
the state, or any manufacturer, supplier or operator of gaming devices. The selection of
an independent testing laboratory for any purpose under this Compact shall be made from
a list of one or more laboratories mutually agreed upon by the parties; provided that the
parties hereby agree that any laboratory upon which the National Indian Gaming
Commission has relied for such testing may be utilized for testing required by this
Compact;

18. IGRA means the Indian Gaming Regulatory Act, Pub. L. 100-497, Oct. 17, 1988,
102 Stat. 2467, codified at 25 U.S.C., Section 2701 et seq. and 18 U.S.C., Sections 1166
to 1168;

19. Nonhouse-banked card games means any card game in which the tribe has no
interest in the outcome of the game, including games played in tournament formats and
games in which the tribe collects a fee from the player for participating, and all bets are
placed in a common pool or pot from which all player winnings, prizes and direct costs
are paid. As provided herein, administrative fees may be charged by the tribe against any
common pool in an amount equal to any fee paid the state; provided that the tribe may
seed the pool as it determines necessary from time to time;

20. Patron means any person who is on the premises of a gaming facility, for the
purpose of playing covered games authorized by this Compact;

21. Principal means, with respect to any entity, its sole proprietor or any partner, trustee,
beneficiary or shareholder holding five percent (5%) or more of its beneficial or
controlling ownership, either directly or indirectly, or any officer, director, principal
management employee, or key employee thereof;

22. Rules and regulations means the rules and regulations promulgated by the Tribal
Compliance Agency for implementation of this Compact;

23. Standards means the descriptions and specifications of electronic amusement games,
electronic bonanza-style bingo games and electronic instant bingo games or components
thereof as set forth in Sections 11 through 18 of the State-Tribal Gaming Act as enacted
in 2004 or as amended pursuant to paragraph 27 of this Part or subsection D of Part 13 of
this Compact, including technical specifications for component parts, requirements for
cashless transaction systems, software tools for security and audit purposes, and
procedures for operation of such games;

24. State means the State of Oklahoma;

25. State Compliance Agency (SCA) means the state agency that has the authority to
carry out the states oversight responsibilities under this Compact, which shall be the
Office of State Finance or its successor agency. Nothing herein shall supplant the role or
duties of the Oklahoma State Bureau of Investigation under state law. The Oklahoma
Horse Racing Commission and the Oklahoma Tax Commission shall have no role in
regulating or oversight of any gaming conducted by a tribe;

26. Tribal Compliance Agency (TCA) means the tribal governmental agency that has the
authority to carry out the tribes regulatory and oversight responsibilities under this
Compact. Unless and until otherwise designated by the tribe, the TCA shall be the
[Name of Tribe] Gaming Commission. No covered game employee may be a member or
employee of the TCA. The tribe shall have the ultimate responsibility for ensuring that
the TCA fulfills its responsibilities under this Compact. The members of the TCA shall
be subject to background investigations and licensed to the extent required by any tribal
or federal law, and in accordance with subsection B of Part 7 of this Compact. The tribe
shall ensure that all TCA officers and agents are qualified for such position and receive
ongoing training to obtain and maintain skills that are sufficient to carry out their
responsibilities in accordance with industry standards;

27. State-Tribal Gaming Act means the legislation in which this Model Tribal Gaming
Compact is set forth and, at the tribes option, amendments or successor statutes thereto;

28. Tribal law enforcement agency means a police or security force established and
maintained by the tribe pursuant to the tribes powers of self-government to carry out law
enforcement duties at or in connection with a facility; and

29. Tribe means the [Name of Nation].

Part 4. AUTHORIZATION OF COVERED GAMES

A. The tribe and state agree that the tribe is authorized to operate covered games only in
accordance with this Compact. However, nothing in this Compact shall limit the tribes
right to operate any game that is Class II under IGRA and no Class II games shall be
subject to the exclusivity payments set forth in Part 11 of this Compact. In the case of
electronic bonanza-style bingo games, there have been disagreements between tribes and
federal regulators as to whether or not such games are Class II. Without conceding that
such games are Class III, the tribe has agreed to compact with the state to operate the
specific type of electronic bonanza-style bingo game described in this Compact to
remove any legal uncertainty as to the tribes right to lawfully operate the game. Should
the electronic bonanza-style bingo game or the electronic instant bingo game described in
this act be determined to be Class II by the NIGC or a federal court, then the tribe shall
have the option to operate such games outside of this Compact; provided, any obligations
pursuant to subsection F of Part 11 of this Compact shall not be affected thereby.

B. A tribe shall not operate an electronic bonanza-style bingo game, an electronic instant
bingo game or an electronic amusement game pursuant to this Compact until such game
has been certified by an independent testing laboratory and the TCA as meeting the
standards set out in the State-Tribal Gaming Act for electronic bonanza-style bingo
games, electronic instant bingo games or electronic amusement games, as applicable or
any standards contained in the Oklahoma Horse Racing Commission rules issued
pursuant to subsection B of Section 9 the State-Tribal Gaming Act that modify the
standards for such games that may be conducted by organizational licensees. Provided,
the tribe may rely on any certification of an electronic bonanza-style bingo game, an
electronic instant bingo, or electronic amusement games by the Oklahoma Horse Racing
Commission which was obtained by an organization licensee pursuant to the State-Tribal
Gaming Act to establish certification compliance under this Compact. The tribe may also
rely on any certification of an electronic bonanza-style bingo game, electronic instant
bingo or an electronic amusement game by the TCA obtained by another tribe which has
entered into the model compact to establish certification compliance under this Compact.
Part 5. RULES AND REGULATIONS; MINIMUM REQUIREMENTS FOR
OPERATIONS

A. Regulations. At all times during the Term of this Compact, the tribe shall be
responsible for all duties which are assigned to it, the enterprise, the facility, and the TCA
under this Compact. The tribe shall promulgate any rules and regulations necessary to
implement this Compact, which at a minimum shall expressly include or incorporate by
reference all provisions of Part 5 and the procedural requirements of Part 6 of this
Compact.

Nothing in this Compact shall be construed to affect the tribes right to amend its rules and
regulations, provided that any such amendment shall be in conformity with this Compact.
The SCA may propose additional rules and regulations related to implementation of this
Compact to the TCA at any time, and the TCA shall give good faith consideration to such
suggestions and shall notify the SCA of its response or action with respect thereto.

B. Compliance; Internal Control Standards. All enterprises and facilities shall comply
with, and all covered games approved under the procedures set forth in this Compact
shall be operated in accordance with the requirements set forth in this Compact,
including, but not limited to, those set forth in subsections C and D of this Part. In
addition, all enterprises and facilities shall comply with tribal internal control standards
that provide a level of control that equals or exceeds those set forth in the National Indian
Gaming Commissions Minimum Internal Control Standards (25 12 C.F.R., Part 542).

C. Records. In addition to other records required to be maintained herein, the enterprise

or tribe shall maintain the following records related to implementation of this Compact in
permanent form and as written or entered, whether manually or by computer, and which
shall be maintained by the enterprise and made available for inspection by the SCA for
no less than three (3) years from the date generated:

1. A log recording all surveillance activities in the monitoring room of the

facility, including, but not limited to, surveillance records kept in the normal
course of enterprise operations and in accordance with industry standards;
provided, notwithstanding anything to the contrary herein, surveillance records
may, at the discretion of the enterprise, be destroyed if no incident has been
reported within one (1) year following the date such records were made.
Records, as used in this Compact, shall include video tapes and any other
storage media;

2. Payout from the conduct of all covered games;

3. Maintenance logs for all covered games gaming equipment used by the
enterprise;

4. Security logs as kept in the normal course of conducting and maintaining

security at the facility, which at a minimum shall conform to industry practices
for such reports. The security logs shall document any unusual or nonstandard
activities, occurrences or events at or related to the facility or in connection with
the enterprise. Each incident, without regard to materiality, shall be assigned a
sequential number for each such report. At a minimum, the security logs shall
 consist of the following information, which shall be recorded in a reasonable
fashion noting:
a. the assigned number of the incident,
b. the date of the incident,
c. the time of the incident,
e. the location of the incident,
f. the nature of the incident,
g. the identity, including identification information, of any persons
involved in the incident and any known witnesses to the incident, and
h. the tribal compliance officer making the report and any other persons
contributing to its preparation;

5. Books and records on all covered game activities of the enterprise shall be
maintained in accordance with generally accepted accounting principles
(GAAP); and

6. All documents generated in accordance with this Compact.

D. Use of Net Revenues. Net revenues that the tribe receives from covered games are to
be used for any one or more of those purposes permitted under IGRA:
1. To fund tribal government operations or programs;
2. To provide for the general welfare of the tribe and its members;
3. To promote tribal economic development;
4. To donate to charitable organizations; or
5. To help fund operations of local government agencies.

E. 1. The tribes rules and regulations shall require the enterprise at a minimum to
bar persons based on their prior conduct at the facility or who, because of their
criminal history or association with criminal offenders, pose a threat to the
integrity of the conduct of covered games.

2. The TCA shall establish a list of the persons barred from the facility.

3. The enterprise shall employ its best efforts to exclude persons on such list
from entry into its facility; provided, neither persons who are barred but gain
access to the facility, nor any other person, shall have any claim against the
state, the tribe or the enterprise or any other person for failing to enforce such
bar.

4. Patrons who believe they may be playing covered games on a compulsive

basis may request that their names be placed on the list. All covered game
employees shall receive training on identifying players who have a problem
with compulsive playing and shall be instructed to ask them to leave. Signs and
other materials shall be readily available to direct such compulsive players to
agencies where they may receive counseling.
F. Audits.

1. Consistent with 25 C.F.R., Section 571.12, Audit Standards, the TCA shall
ensure that an annual independent financial audit of the enterprises conduct of
covered games subject to this Compact is secured. The audit shall, at a
minimum, examine revenues and expenses in connection with the conduct of
covered games in accordance with generally accepted auditing standards and
shall include, but not be limited to, those matters necessary to verify the
determination of adjusted gross revenues and the basis of the payments made to
the state pursuant to Part 11 of this Compact.

2. The auditor selected by the TCA shall be a firm of known and demonstrable
experience, expertise and stature in conducting audits of this kind and scope.

3. The audit shall be concluded within five (5) months following the close of
each calendar year, provided that extensions may be requested by the tribe and
shall not be refused by the state where the circumstances justifying the
extension request are beyond the tribes control.

4. The audit of the conduct of covered games may be conducted as part of or in

conjunction with the audit of the enterprise, but if so conducted shall be
separately stated for the reporting purposes required herein.

5. The audit shall conform to generally accepted auditing standards. As part of

the audit report, the auditor shall certify to the TCA that, in the course of the
audit, the auditor discovered no matters within the scope of the audit which
were determined or believed to be in violation of any provision of this Compact.

6. The enterprise shall assume all costs in connection with the audit.

7. The audit report for the conduct of covered games shall be submitted to the
SCA within thirty (30) days of completion. The auditors work papers
concerning covered games shall be made available to the SCA upon request.

8. Representatives of the SCA may, upon request, meet with the auditors to
discuss the work papers, the audit or any matters in connection therewith;
provided, such discussions are limited to covered games information and pursue
legitimate state covered games interests.

G. Rules for Play of and Prizes for Covered Games. Summaries of the rules for playing
covered games and winning prizes shall be visibly displayed in the facility. Complete
sets of rules shall be available in pamphlet form in the facility.

H. Supervisory Line of Authority. The enterprise shall provide the TCA and SCA with a
chart of the supervisory lines of authority with respect to those directly responsible for
the conduct of covered games, and shall promptly notify those agencies of any material
changes thereto.
I. Sale of Alcoholic Beverages. The sale and service of alcoholic beverages in a facility
shall be in compliance with state, federal and tribal law in regard to the licensing and sale
of such beverages.

J. Age Restrictions. No person who would not be eligible to be a patron of a pari-mutuel

system of wagering pursuant to the provisions of subsection B of Section 208.4 of Title
3A of the Oklahoma Statutes shall be admitted into any area in a facility where covered
games are played, nor be permitted to operate, or obtain a prize from or in connection
with the operation of, any covered game, directly or indirectly.

K. Destruction of Documents. Enterprise books, records and other materials

documenting the conduct of covered games shall be destroyed only in accordance with
rules and regulations adopted by the TCA, which at a minimum shall provide as follows:
1. Material that might be utilized in connection with a potential tort claim
pursuant to Part 6 of this Compact, including, but not limited to, incident
reports, surveillance records, statements, and the like, shall be maintained at
least one (1) year beyond the time which a claim can be made under Part 6 of
this Compact or, if a tort claim is made, beyond the final disposition of such
claim;

2. Material that might be utilized in connection with a prize claim, including

but not limited to incident reports, surveillance records, statements, and the like,
shall be maintained at least one hundred eighty (180) days beyond the time
which a claim can be made under Part 6 of this Compact or, if a prize claim is
made, beyond the final disposition of such claim; and

3. Notwithstanding anything herein to the contrary, all enterprise books and

records with respect to the conduct of covered games or the operation of the
enterprise, including, but not limited to, all interim and final financial and audit
reports and materials related thereto which have been generated in the ordinary
course of business, shall be maintained for the minimum period of three (3)
years.

L. Location. The tribe may establish and operate enterprises and facilities that operate
covered games only on its Indian lands as defined by IGRA. The tribe shall notify the
SCA of the operation of any new facility following the effective date of this Compact.
Nothing herein shall be construed as expanding or otherwise altering the term Indian
lands, as that term is defined in the IGRA, nor shall anything herein be construed as
altering the federal process governing the tribal acquisition of Indian lands for gaming
purposes.

M. Records of Covered Games. The TCA shall keep a record of, and shall report at least
quarterly to the SCA, the number of covered games in each facility, by the name or type
of each and its identifying number.
PART 6. TORT CLAIMS; PRIZE CLAIMS; LIMITED CONSENT TO SUIT

A. Tort Claims. The enterprise shall ensure that patrons of a facility are afforded due
process in seeking and receiving just and reasonable compensation for a tort claim for
personal injury or property damage against the enterprise arising out of incidents
occurring at a facility, hereinafter tort claim, as follows:
1. During the term of this Compact, the enterprise shall maintain public liability
insurance for the express purposes of covering and satisfying tort claims. The
insurance shall have liability limits of not less than Two Hundred Fifty Thousand
Dollars ($250,000.00) for any one person and Two Million Dollars ($2,000,000.00)
for any one occurrence for personal injury, and One Million Dollars
($1,000,000.00) for any one occurrence for property damage, hereinafter the limit
of liability, or the corresponding limits under the Governmental Tort Claims Act,
whichever is greater. No tort claim shall be paid, or be the subject of any award, in
excess of the limit of liability;

2. The tribe consents to suit on a limited basis with respect to tort claims subject to
the limitations set forth in this subsection and subsection C of this Part. No
consents to suit with respect to tort claims, or as to any other claims against the tribe
shall be deemed to have been made under this Compact, except as provided in
subsections B and C of this Part;

3. The enterprises insurance policy shall include an endorsement providing that the
insurer may not invoke tribal sovereign immunity in connection with any claim
made within the limit of liability if the claim complies with the limited consent
provisions of subsection C of this Part. Copies of all such insurance policies shall
be forwarded to the SCA;

4. Any patron having a tort claim shall file a written tort claim notice by delivery to
the enterprise or the TCA. The date the tort claim notice is filed with the enterprise
or the TCA shall be deemed the official date of filing the tort claim notice. The tort
claim notice shall be filed within one (1) year of the date of the event which
allegedly caused the claimed loss. Failure to file the tort claim notice during such
period of time shall forever bar such tort claim; provided that a tort claim notice
filed with the enterprise or the TCA more than ninety (90) days, but within one (1)
year, after the event shall be deemed to be timely filed, but any judgment thereon
shall be reduced by ten percent (10%).

5. If the tort claim notice is filed with the TCA, the TCA shall forward a copy of
the tort claim to the enterprise and the SCA within forty-eight (48) hours of filing,
and if the tort claim notice is filed with the enterprise, the enterprise shall forward a
copy of the tort claim to the TCA and the SCA within forty-eight (48) hours of
filing;

6. The tort claim notice shall state the date, time, place and circumstances of the
incident upon which the tort claim is based, the identity of any persons known to
have information regarding the incident, including employees or others involved in
or who witnessed the incident, the amount of compensation and the basis for said
relief; the name, address and telephone number of the claimant, and the name,
address and telephone number of any representative authorized to act or settle the
claim on behalf of the claimant;

7. All tort claim notices shall be signed by the claimant. The rules and regulations
may additionally require that the tort claim notices be signed under oath. The rules
and regulations may also require that as a condition of prosecuting tort claims, the
claimant shall appear to be interviewed or deposed at least once under reasonable
circumstances, which shall include the attendance of the claimants legal counsel if
requested; provided that the enterprise shall afford claimant at least thirty (30) days
written notice of the interview or deposition; and provided further that the claimants
failure to appear without cause for any interview or deposition properly noticed
pursuant to this paragraph shall be deemed a voluntary withdrawal of the tort claim;

8. The enterprise shall promptly review, investigate, and make a determination

regarding the tort claim. Any portion of a tort claim which is unresolved shall be
deemed denied if the enterprise fails to notify the claimant in writing of its approval
within ninety (90) days of the filing date, unless the parties by written agreement
extend the date by which a denial shall be deemed issued if no other action is taken.
Each extension shall be for no more than ninety (90) days, but there shall be no
limit on the number of written agreements for extensions, provided that no written
agreement for extension shall be valid unless signed by the claimant and an
authorized representative of the enterprise. The claimant and the enterprise may
continue attempts to settle a claim beyond an extended date; provided, settlement
negotiations shall not extend the date of denial in the absence of a written
agreement for extension as required by this paragraph;

9. A judicial proceeding for any cause arising from a tort claim may be maintained
in accordance with and subject to the limitations of subsection C of this Part only if
the following requirements have been met:
a. the claimant has followed all procedures required by this Part, including,
without limitation, the delivery of a valid and timely written tort claim notice to
the enterprise.
b. the enterprise has denied the tort claim, and
c. the claimant has filed the judicial proceeding no later than the one-
hundred-eightieth day after denial of the claim by the enterprise; provided, that
neither the claimant nor the enterprise may agree to extend the time to
commence a judicial proceeding; and

10. Notices explaining the procedure and time limitations with respect to making a
tort claim shall be prominently posted in the facility. Such notices shall explain the
method and places for making a tort claim, that this procedure is the exclusive
method of making a tort claim, and that claims that do not follow these procedures
shall be forever barred. The enterprise shall make pamphlets containing the
requirements in this subsection readily available to all patrons of the facility and
shall provide such pamphlets to a claimant within five (5) days of the filing of a
claim.
B. Prize Claims. The enterprise shall ensure that patrons of a facility are afforded due
process in seeking and receiving just and reasonable compensation arising from a patrons
dispute, in connection with his or her play of any covered game, the amount of any prize
which has been awarded, the failure to be awarded a prize, or the right to receive a refund
or other compensation, hereafter prize claim, as follows:
1. The tribe consents to suit on a limited basis with respect to prize claims against
the enterprise only as set forth in subsection C of this Part; no consents to suit with
respect to prize claims, or as to any other claims against the tribe shall be deemed to
have been made under this Compact, except as provided in subsections A and C of
this Part;

2. The maximum amount of any prize claim shall be the amount of the prize which
the claimant establishes he or she was entitled to be awarded, hereafter prize limit;

3. Any patron having a prize claim shall file a written prize claim notice by
delivery to the enterprise or the TCA. The date the prize claim is filed with the
enterprise or the TCA shall be deemed the official date of filing the prize claim
notice. The prize claim notice shall be filed within ten (10) days of the event which
is the basis of the claim. Failure to file the prize claim notice during such period of
time shall forever bar such prize claim;

4. If the prize claim notice is filed with the TCA, the TCA shall forward a copy of
the prize claim to the enterprise and the SCA within forty-eight (48) hours of its
filing; and if the prize claim notice is filed with the enterprise, the enterprise shall
forward a copy of the tort claim to the TCA and the SCA within forty-eight (48)
hours of filing;

5. The written prize claim notice shall state the date, time, place and circumstances
of the incident upon which the prize claim is based, the identity of any persons
known to have information regarding the incident, including employees or others
involved in or who witnessed the incident, the amount demanded and the basis for
said amount, the name, address and telephone number of the claimant, and the
name, address and telephone number of any representative authorized to act or
settle the claim on behalf of the claimant;

6. All notices of prize claims shall be signed by the claimant. The rules and
regulations may additionally require that the prize claim notices be signed under
oath;

7. The enterprise shall promptly review, investigate and make a determination

regarding the prize claim. Claimants shall cooperate in providing information,
including personal sworn statements and agreeing to be interviewed, as the
enterprise shall reasonably request. The claimant is permitted to have counsel
present during any such interview;

8. If the prize claim is not resolved within seventy-two (72) hours from the time of
filing the claim in accordance with paragraph 5 of this subsection, the TCA shall
immediately notify the SCA in writing that the claim has not been resolved;
 9. In the event the claim is resolved, the TCA shall not be obligated to report that
fact to the SCA, but shall make TCA reports available for review;

10. Any portion of a prize claim which is unresolved shall be deemed denied if the
enterprise fails to notify the claimant in writing of its approval within thirty (30)
days of the filing date, unless the parties agree by written agreement to extend the
date. Each extension shall be for no more than thirty (30) days, but there shall be
no limit on the number of written agreements for extensions; provided, that no
written agreements for extension shall be valid unless signed by the claimant and an
authorized representative of the TCA. The claimant and the enterprise may
continue attempts to settle a claim beyond an extended date; provided, settlement
negotiations shall not extend the date of denial in the absence of a written extension
required by this paragraph;

11. A judicial proceeding for any cause arising from a prize claim may be
maintained in accordance with and subject to the limitations of subsection C of this
Part only if the following requirements have been met:
a. the claimant has followed all procedures required by this Part, including
without limitation, the delivery of a valid and timely written prize claim notice
to the enterprise,
b. the enterprise has denied the prize claim, and
c. the claimant has filed the judicial proceeding no later than one hundred
eighty (180) days after denial of the claim by the enterprise; provided that
neither the claimant nor the enterprise may extend the time to commence a
judicial proceeding; and

12. Notices explaining the procedure and time limitations with respect to making a
prize claim shall be prominently posted in the facility. Such notices shall explain
the method and places for making claims, that this procedure is the exclusive
method of making a prize claim, and that claims that do not follow this procedure
shall be forever barred. The enterprise shall make pamphlets containing the
requirements in this subsection readily available to all patrons of the facility and
shall provide such pamphlets to a claimant by the TCA within five (5) days of the
filing date of a claim.

C. Limited Consent to Suit for Tort Claims and Prize Claims. The tribe consents to suit
against the enterprise in a court of competent jurisdiction with respect to a tort claim or
prize claim if all requirements of paragraph 9 of subsection A or all requirements of
paragraph 11 of subsection B of this Part have been met; provided that such consent shall
be subject to the following additional conditions and limitations:
1. For tort claims, consent to suit is granted only to the extent such claim or any
award or judgment rendered thereon does not exceed the limit of liability. Under no
circumstances shall any consent to suit be effective as to any award which exceeds
such applicable amounts. This consent shall only extend to the patron actually
claiming to have been injured. A tort claim shall not be assignable. In the event
any assignment of the tort claim is made in violation of this Compact, or any person
other than the patron claiming the injury becomes a party to any action hereunder,
this consent shall be deemed revoked for all purposes. Notwithstanding the
foregoing, consent to suit shall not be revoked if an action on a tort claim is filed by
(i) a court appointed representative of a claimants estate, (ii) an indispensable party,
 or (iii) a health provider or other party subrogated to the claimants rights by virtue
of any insurance policy; provided, that nothing herein is intended to, or shall
constitute a consent to suit against the enterprise as to such party except to the
extent such partys claim is:
a. in lieu of and identical to the claim that would have been made by the
claimant directly but for the appointment of said representative or indispensable
party, and participation of such other party is in lieu of and not in addition to
pursuit of the claim by the patron, and
b. the claim of such other party would have been subject to a consent to suit
hereunder if it had been made by the claimant directly; and

2. For prize claims, consent is granted only to the extent such claim does not
exceed the prize limit. Under no circumstances shall any award exceed the prize
limit. This consent shall only extend to the patron actually claiming to have
engaged in the play of a covered game on which the claim is based. Prize claims
shall not be assignable. In the event any assignment of the prize claim is made, or
any person other than the claimant entitled to make the claim becomes a party to
any action hereunder, this consent shall be deemed revoked for all purposes.
Notwithstanding the foregoing, consent to suit shall not be revoked if an action on a
prize claim is filed by (i) a court-appointed representative of a claimants estate, or
(ii) an indispensable party, provided that nothing herein is intended to, or shall
constitute a consent to suit against the enterprise as to such party except to the
extent such partys claim is:
a. in lieu of and identical to the claim that would have been made by the
claimant directly but for the appointment of said representative or indispensable
party, and participation of such other party is in lieu of and not in addition to
pursuit of the claim by the patron, and
b. the claim of such other party would have been subject to a consent to suit
hereunder if it had been made by the claimant directly.

D. Remedies in the Event of No or Inadequate Insurance for Tort Claim. In the event a
tort claim is made and there is no, or inadequate, insurance in effect as required under this
Compact, the enterprise shall be deemed to be in default hereunder unless, within ten (10)
days of a demand by the SCA or a claimant to do so, the enterprise has posted in an
irrevocable escrow account at a state or federally chartered bank which is not owned or
controlled by the tribe, sufficient cash, a bond or other security sufficient to cover any
award that might be made within the limits set forth in paragraph 1 of subsection A of
this Part, and informs the claimant and the state of:
1. The posting of the cash or bond;
2. The means by which the deposit can be independently verified as to the amount
and the fact that it is irrevocable until the matter is finally resolved;
3. The right of the claimant to have this claim satisfied from the deposit if the
claimant is successful on the claim; and
4. The notice and hearing opportunities in accordance with the tribes tort law, if
any, otherwise in accordance with principles of due process, which will be afforded
to the claimant so that the intent of this Compact to provide claimants with a
meaningful opportunity to seek a just remedy under fair conditions will be fulfilled.
Part 7. ENFORCEMENT OF COMPACT PROVISIONS

A. The tribe and TCA shall be responsible for regulating activities pursuant to this
Compact. As part of its responsibilities, the tribe shall require the enterprise do the
following:
1. Operate the conduct of covered games in compliance with this Compact,
including, but not limited to, the standards and the tribes rules and regulations;
2. Take reasonable measures to assure the physical safety of enterprise patrons and
personnel, prevent illegal activity at the facility, and protect any rights of patrons
under the Indian Civil Rights Act, 25 U.S.C., Sec. 1302-1303;
3. Promptly notify appropriate law enforcement authorities of persons who may be
involved in illegal acts in accordance with applicable law;
4. Assure that the construction and maintenance of the facility meets or exceeds
federal and tribal standards for comparable buildings; and
5. Prepare adequate emergency access plans to ensure the health and safety of all
covered game patrons. Upon the finalization of emergency access plans, the TCA
or enterprise shall forward copies of such plans to the SCA.

B. All licenses for members and employees of the TCA shall be issued according to the
same standards and terms applicable to facility employees. The TCA shall employ
qualified compliance officers under the authority of the TCA. The compliance officers
shall be independent of the enterprise, and shall be supervised and accountable only to
the TCA. A TCA compliance officer shall be available to the facility during all hours of
operation upon reasonable notice, and shall have immediate access to any and all areas of
the facility for the purpose of ensuring compliance with the provisions of this Compact.
The TCA shall investigate any such suspected or reported violation of this Compact and
shall require the enterprise to correct such violations. The TCA shall officially enter into
its files timely written reports of investigations and any action taken thereon, and shall
forward copies of such reports to the SCA within fifteen (15) days of such filing. Any
such violations shall be reported immediately to the TCA, and the TCA shall immediately
forward the same to the SCA. In addition, the TCA shall promptly report to the SCA any
such violations which it independently discovers.

C. In order to develop and foster a positive and effective relationship in the enforcement
of the provisions of this Compact, representatives of the TCA and the SCA shall meet,
not less than on an annual basis, to review past practices and examine methods to
improve the regulatory scheme created by this Compact. The meetings shall take place at
a location mutually agreed to by the TCA and the SCA. The SCA, prior to or during such
meetings, shall disclose to the TCA any concerns, suspected activities, or pending matters
reasonably believed to possibly constitute violations of this Compact by any person,
organization or entity, if such disclosure will not compromise the interest sought to be
protected.
Part 8. STATE MONITORING OF COMPACT

A. The SCA shall, pursuant to the provisions of this Compact, have the authority to
monitor the conduct of covered games to ensure that the covered games are conducted in
compliance with the provisions of this Compact. In order to properly monitor the
conduct of covered games, agents of the SCA shall have reasonable access to all areas of
the facility related to the conduct of covered games as provided herein:
1. Access to the facility by the SCA shall be during the facilitys normal operating
hours only; provided that to the extent such inspections are limited to areas of the
facility where the public is normally permitted, SCA agents may inspect the facility
without giving prior notice to the enterprise;
2. Any suspected or claimed violations of this Compact or of law shall be directed
in writing to the TCA; SCA agents shall not interfere with the functioning of the
enterprise; and
3. Before SCA agents enter any nonpublic area of the facility, they shall provide
proper photographic identification to the TCA. SCA agents shall be accompanied
in nonpublic areas of the facility by a TCA agent. A one-hour notice by SCA to the
TCA may be required to assure that a TCA officer is available to accompany SCA
agents at all times.

B. Subject to the provisions herein, agents of the SCA shall have the right to review and
copy documents of the enterprise related to its conduct of covered games. The review
and copying of such documents shall be during normal business hours or hours otherwise
at tribes discretion. However, the SCA shall not be permitted to copy those portions of
any documents of the enterprise related to its conduct of covered games that contain
business or marketing strategies or other proprietary and confidential information of the
enterprise, including, but not limited to, customer lists, business plans, advertising
programs, marketing studies, and customer demographics or profiles. No documents of
the enterprise related to its conduct of covered games or copies thereof shall be released
to the public by the state under any circumstances. All such documents shall be deemed
confidential documents owned by the tribe and shall not be subject to public release by
the state.

C. At the completion of any SCA inspection or investigation, the SCA shall forward a
written report thereof to the TCA. The TCA shall be apprised on a timely basis of all
pertinent, nonconfidential information regarding any violation of federal, state, or tribal
laws, the rules or regulations, or this Compact. Nothing herein prevents the SCA from
contacting tribal or federal law enforcement authorities for suspected criminal
wrongdoing involving the TCA. TCA may interview SCA inspectors upon reasonable
notice and examine work papers and SCA in the same fashion that SCA inspectors may
examine auditors notes and make auditor inquiry unless providing such information to the
TCA will compromise the interests sought to be protected. If the SCA determines that
providing the information to the TCA will compromise the interests sought to be
protected, then the SCA shall provide such information to the tribe in accordance with
Part 13 of this Compact.
 D. Nothing in this Compact shall be deemed to authorize the state to regulate the tribes
government, including the TCA, or to interfere in any way with the tribes selection of its
governmental officers, including members of the TCA; provided, however, the SCA and
the tribe, upon request of the tribe, shall jointly employ, at the tribes expense, an
independent firm to perform on behalf of the SCA the duties set forth in subsections A
and B of this Part.

Part 9. JURISDICTION

This Compact shall not alter tribal, federal or state civil adjudicatory or criminal
jurisdiction.
Part 10. LICENSING

A. 1. Except as provided in paragraph 4 of Part 3, no covered game employee shall be

employed at a facility or by an enterprise unless such person is licensed in
accordance with this Compact. In addition to the provisions of this Part which are
applicable to the licensing of all covered game employees, the requirements of 25
C.F.R., Part 556, Background Investigations for Primary Management Officials and
Key Employees, and 25 C.F.R., Part 558, Gaming Licenses for Key Employees and
Primary Management Officials, apply to Key Employees and Primary Management
Officials of the facility and enterprise.

2. All prospective covered game employees shall apply to the TCA for a license.
Licenses shall be issued for periods of no more than two (2) years, after which they
may be renewed only following review and update of the information upon which
the license was based; provided, the TCA may extend the period in which the
license is valid for a reasonable time pending the outcome of any investigation
being conducted in connection with the renewal of such license. In the event the
SCA contends that any such extension is unreasonable, it may seek resolution of
that issue pursuant to Part 11 of this Compact.

3. The application process shall require the TCA to obtain sufficient information
and identification from the applicant to permit a background investigation to
determine if a license should be issued in accordance with this Part and the rules
and regulations. The TCA shall obtain information about a prospective covered
game employee that includes:
a. full name, including any aliases by which applicant has ever been known,
b. social security number,
c. date and place of birth,
d. residential addresses for the past five (5) years,
e. employment history for the past five (5) years,
f. driver license number,
g. all licenses issued and disciplinary charges filed, whether or not discipline
was imposed, by any state or tribal regulatory authority,
h. all criminal arrests and proceedings, except for minor traffic offenses, to
which the applicant has been a party,
i. a set of fingerprints,
j. a current photograph,
k. military service history, and
l. any other information the TCA determines is necessary to conduct a
thorough background investigation.

4. Upon obtaining the required initial information from a prospective covered game
employee, the TCA shall forward a copy of such information to the SCA, along
with any determinations made with respect to the issuance or denial of a temporary
or permanent license. The SCA may conduct its own background investigation of
the applicant at SCA expense, shall notify the TCA of such investigation within a
reasonable time from initiation of the investigation, and shall provide a written
report to the TCA of the outcome of such investigation within a reasonable time
from the receipt of a request from the TCA for such information. SCA inspector
field notes and the SCA inspector shall be available upon reasonable notice for
TCA review and inquiry.

5. The TCA may issue a temporary license for a period not to exceed ninety (90)
days, and the enterprise may employ on a probationary basis, any prospective
covered game employee who represents in writing that he or she meets the
standards set forth in this Part, provided the TCA or enterprise is not in possession
of information to the contrary. The temporary license shall expire at the end of the
ninety-day period or upon issuance or denial of a permanent license, whichever
event occurs first. Provided that the temporary license period may be extended at
the discretion of the TCA so long as good faith efforts are being made by the
applicant to provide required information, or the TCA is continuing to conduct its
investigation or is waiting on information from others, and provided further that in
the course of such temporary or extended temporary licensing period, no
information has come to the attention of the TCA which, in the absence of
countervailing information then in the record, would otherwise require denial of
license. A permanent license shall be issued or denied within a reasonable time
following the completion of the applicants background investigation.

6. In covered gaming the tribe shall not employ and shall terminate, and the TCA
shall not license and shall revoke a license previously issued to, any covered game
employee who:
a. has been convicted of any felony or an offense related to any covered
games or other gaming activity,
b. has knowingly and willfully provided false material, statements or
information on his or her employment application, or
c. is a person whose prior activities, criminal record, or reputation, habits,
and associations pose a threat to the public interest or to the effective regulation
and control of the conduct of covered games, or create or enhance the dangers
of unsuitable, unfair, or illegal practices, methods, and activities in the conduct
of covered games or the carrying on of the business and financial arrangements
incidental thereto.

7. The SCA may object to the employment of any individual by the enterprise
based upon the criteria set forth in paragraph 6 of subsection A of this Part. Such
objection shall be in writing setting forth the basis of the objection. The SCA
inspectors work papers, notes and exhibits which formed the SCA conclusion shall
be available upon reasonable notice for TCA review. The enterprise shall have
discretion to employ an individual over the objection of the SCA.

8. The TCA shall have the discretion to initiate or continue a background

investigation of any licensee or license applicant and to take appropriate action with
respect to the issuance or continued validity of any license at any time, including
suspending or revoking such license.

9. The TCA shall require all covered game employees to wear, in plain view,
identification cards issued by the TCA which include a photograph of the employee,
his or her first name, a four-digit identification number unique to the license issued
to the employee, a tribal seal or signature verifying official issuance of the card, and
 a date of expiration, which shall not extend beyond such employees license
expiration date.

B. 1. By person or entity who, directly or indirectly, provides or is likely to provide at

least Twenty-five Thousand Dollars ($25,000.00) in goods or services to the
enterprise in any twelve-month period, or who has received at least Twenty-five
Thousand Dollars ($25,000.00) for goods or services provided to the enterprise in
any consecutive twelve-month period within the immediately preceding twenty-
four-month period, or any person or entity who provides through sale, lease, rental
or otherwise covered games, or parts, maintenance or service in connection
therewith to the tribe or the enterprise at any time and in any amount, shall be
licensed by the TCA prior to the provision thereof. Provided, that attorneys or
certified public accountants and their firms shall be exempt from the licensing
requirement herein to the extent that they are providing services covered by their
professional licenses.

2. Background investigations and licensing shall follow the same process and apply
the same criteria as for covered game employees set forth in paragraph 6 of
subsection A of this Part.

3. In the case of a license application of any entity, all principals thereof shall be
subjected to the same background investigation required for the licensing of a
covered game employee, but no license as such need be issued; provided, no license
shall be issued to the entity if the TCA determines that one or more of its principals
will be persons who would not be qualified to receive a license if they applied as
covered game employees.

4. Nothing herein shall prohibit the TCA from processing and issuing a license to a
principal in his or her own name.

5. Licenses issued under this subsection shall be reviewed at least every two (2)
years for continuing compliance, and shall be promptly revoked if the licensee is
determined to be in violation of the standards set forth in paragraph 6 of subsection
A of this Part. In connection with such a review, the TCA shall require the person
or entity to update all information provided in the previous application.

6. The enterprise shall not enter into, or continue to make payments pursuant to,
any contract or agreement for the provision of goods or services with any person or
entity who does not meet the requirements of this Part including, but not limited to,
any person or entity whose application to the TCA for a license has been denied, or
whose license has expired or been suspended or revoked.

7. Pursuant to 25 C.F.R., Part 533, all management contracts must be approved by

the Chair of the National Indian Gaming Commission. The SCA shall be notified
promptly after any such approval.

8. In addition to any licensing criteria set forth above, if any person or entity
seeking licensing under this subsection is to receive any fee or other payment based
on the revenues or profits of the enterprise, the TCA may take into account whether
or not such fee or other payment is fair in light of market conditions and practices.
C. 1. Subject to the exceptions set forth in paragraph 4 of this subsection, any person
or entity extending financing, directly or indirectly, to the facility or enterprise in
excess of Fifty Thousand Dollars ($50,000.00) in any twelve-month period shall be
licensed prior to providing such financing. Principals thereof shall be subjected to
background investigations and determinations in accordance with the procedures
and standards set forth in subsection A of this Part. Licenses issued under this
section shall be reviewed at least every two (2) years for continuing compliance,
and shall be promptly revoked if the licensee is determined to be in violation of the
standards set forth in paragraph 6 of subsection A of this Part. In connection with
such a review, the TCA shall require the person or entity to update all information
provided in the previous application.

2. The SCA shall be notified of all financing and loan transactions with respect to
covered games or supplies in which the amount exceeds Fifty Thousand Dollars
($50,000.00) in any twelve-month period, and shall be entitled to review copies of
all agreements and documents in connection therewith.

3. A supplier of goods or services who provides financing exclusively in

connection with the sale or lease of covered games equipment or supplies shall be
licensed solely in accordance with licensing procedures applicable, if at all, to such
suppliers herein.

4. Financing provided by a federally regulated or state-regulated bank, savings and

loan, or trust, or other federally or state-regulated lending institution; any agency of
the federal, state, tribal or local government; or any person or entity, including, but
not limited to, an institutional investor who, alone or in conjunction with others,
lends money through publicly or commercially traded bonds or other commercially
traded instruments, including but not limited to the holders of such bonds or
instruments or their assignees or transferees, or which bonds or commercially
traded instruments are underwritten by any entity whose shares are publicly traded
or which underwriter, at the time of the underwriting, has assets in excess of One
Hundred Million Dollars ($100,000,000.00), shall be exempt from the licensing and
background investigation requirements in subsection B of this Part or this
subsection.

D. In the event the SCA objects to a lender, vendor or any other person or entity within
subsection B or C of this Part seeking to do business with the enterprise, or to the
continued holding of a license by such person or entity, it may notify the TCA of its
objection. The notice shall set forth the basis of the objection with sufficient particularity
to enable the TCA to investigate the basis of the objection. The SCA inspector and SCA
inspector field notes shall be available for TCA review and inquiry. Within a reasonable
time after such notification, the TCA shall report to the SCA on the outcome of its
investigation and of any action taken or decision not to take action.
Part 11. EXCLUSIVITY AND FEES

A. The parties acknowledge and recognize that this Compact provides tribes with
substantial exclusivity and, consistent with the goals of IGRA, special opportunities for
tribal economic opportunity through gaming within the external boundaries of Oklahoma
in respect to the covered games. In consideration thereof, so long as the state does not
change its laws after the effective date of this Compact to permit the operation of any
additional form of gaming by any such organization licensee, or change its laws to permit
any additional electronic or machine gaming within Oklahoma, the tribe agrees to pay the
following fees:
1. The tribe covenants and agrees to pay to the state a fee derived from covered
game revenues calculated as set forth in paragraph 2 of this subsection. Such fee
shall be paid no later than the twentieth day of the month for revenues received by
the tribe in the preceding month; and

2. The fee shall be:

a. four percent (4%) of the first Ten Million Dollars ($10,000,000.00) of
adjusted gross revenues received by a tribe in a calendar year from the play of
electronic amusement games, electronic bonanza-style bingo games and
electronic instant bingo games,
b. five percent (5%) of the next Ten Million Dollars ($10,000,000.00) of
adjusted gross revenues received by a tribe in a calendar year from the play of
electronic amusement games, electronic bonanza-style bingo games and
electronic instant bingo games,
c. six percent (6%) of all subsequent adjusted gross revenues received by a
tribe in a calendar year from the play of electronic amusement games, electronic
bonanza-style bingo games and electronic instant bingo games, and
d. ten percent (10%) of the monthly net win of the common pool(s) or pot(s)
from which prizes are paid for nonhouse-banked card games. The tribe is
entitled to keep an amount equal to state payments from the common pool(s) or
pot(s) as part of its cost of operating the games.

Payments of such fees shall be made to the Treasurer of the State of Oklahoma.
Nothing herein shall require the allocation of such fees to particular state purposes,
including, but not limited to, the actual costs of performing the states regulatory
responsibilities hereunder.

B. Annual oversight assessment. In addition to the fee provided for in subsection A of

this Part, the state shall be entitled to payment for its costs incurred in connection with
the oversight of covered games to the extent provided herein, annual oversight
assessment. The annual oversight assessment, which shall be Thirty-five Thousand
Dollars ($35,000.00), shall be determined and paid in advance on a fiscal year basis for
each twelve (12) months ending on June 30 of each year.

C. Upon the effective date of this Compact, the tribe shall deposit with the SCA the sum
of Fifty Thousand Dollars ($50,000.00) (start-up assessment). The purpose of the start-
up assessment shall be to assist the state in initiating its administrative and oversight
responsibilities hereunder and shall be a one-time payment to the state for such purposes.
D. Nothing in this Compact shall be deemed to authorize the state to impose any tax, fee,
charge or assessment upon the tribe or enterprise except as expressly authorized pursuant
to this Compact; provided that, to the extent that the tribe is required under federal law to
report prizes awarded, the tribe agrees to copy such reports to the SCA.

E. In consideration for the covenants and agreements contained herein, the state agrees
that it will not, during the term of this Compact, permit the nontribal operation of any
machines or devices to play covered games or electronic or mechanical gaming devices
otherwise presently prohibited by law within the state in excess of the number and
outside of the designated locations authorized by the State-Tribal Gaming Act. The state
recognizes the importance of this provision to the tribe and agrees, in the event of a
breach of this provision by the state, to require any nontribal entity which operates any
such devices or machines in excess of such number or outside of the designated location
to remit to the state at least quarterly no less than fifty percent (50%) of any increase in
the entities adjusted gross revenues following the addition of such excess machines. The
state further agrees to remit at least quarterly to eligible tribes, as liquidated damages, a
sum equal to fifty percent (50%) of any increase in the entities adjusted gross revenues
following the addition of such excess machines. For purposes of this Part, eligible tribes
means those tribes which have entered into this Compact and are operating gaming
pursuant to this Compact within forty-five (45) miles of an entity which is operating
covered game machines in excess of the number authorized by, or outside of the location
designated by, the State-Tribal Gaming Act. Such liquidated damages shall be allocated
pro rata to eligible tribes based on the number of covered game machines operated by
each Eligible Tribe in the time period when such adjusted gross revenues were generated.

F. In consideration for the covenants and agreements contained herein, the tribe agrees
that in the event it has currently or locates in the future a facility within a radius of twenty
(20) miles from a recipient licensee as that term is defined in subsection K of Section 4 of
the State-Tribal Gaming Act that it shall comply with the requirements of subsection K of
Section 4 of the State-Tribal Gaming Act.
Part 12. DISPUTE RESOLUTION

In the event that either party to this Compact believes that the other party has failed to
comply with any requirement of this Compact, or in the event of any dispute hereunder,
including, but not limited to, a dispute over the proper interpretation of the terms and
conditions of this Compact, the following procedures may be invoked:
1. The goal of the parties shall be to resolve all disputes amicably and voluntarily
whenever possible. A party asserting noncompliance or seeking an interpretation of
this Compact first shall serve written notice on the other party. The notice shall
identify the specific Compact provision alleged to have been violated or in dispute
and shall specify in detail the asserting partys contention and any factual basis for
the claim. Representatives of the tribe and state shall meet within thirty (30) days
of receipt of notice in an effort to resolve the dispute;

2. Subject to the limitation set forth in paragraph 3 of this Part, either party may
refer a dispute arising under this Compact to arbitration under the rules of the
American Arbitration Association (AAA), subject to enforcement or pursuant to
review as provided by paragraph 3 of this Part by a federal district court. The
remedies available through arbitration are limited to enforcement of the provisions
of this Compact. The parties consent to the jurisdiction of such arbitration forum
and court for such limited purposes and no other, and each waives immunity with
respect thereto. One arbitrator shall be chosen by the parties from a list of qualified
arbitrators to be provided by the AAA. If the parties cannot agree on an arbitrator,
then the arbitrator shall be named by the AAA. The expenses of arbitration shall
be borne equally by the parties. A party asserting noncompliance or seeking an
interpretation of this Compact under this section shall be deemed to have certified
that to the best of the partys knowledge, information, and belief formed after
reasonable inquiry, the claim of noncompliance or the request for interpretation of
this Compact is warranted and made in good faith and not for any improper
purpose, such as to harass or to cause unnecessary delay or the needless incurring of
the cost of resolving the dispute. If the dispute is found to have been initiated in
violation of this Part, the Arbitrator, upon request or upon his or her own initiative,
shall impose upon the violating party an appropriate sanction, which may include an
award to the other party of its reasonable expenses incurred in having to participate
in the arbitration; and

3. Notwithstanding any provision of law, either party to the Compact may bring an
action against the other in a federal district court for the de novo review of any
arbitration award under paragraph 2 of this Part. The decision of the court shall be
subject to appeal. Each of the parties hereto waives immunity and consents to suit
therein for such limited purposes, and agrees not to raise the Eleventh Amendment
to the United States Constitution or comparable defense to the validity of such
waiver. Nothing herein shall be construed to authorize a money judgment other
than for damages for failure to comply with an arbitration decision requiring the
payment of monies.
Part 13. CONSTRUCTION OF COMPACT; FEDERAL APPROVAL

A. Each provision, section, and subsection of this Compact shall stand separate and
independent of every other provision, section, or subsection. In the event that a federal
district court shall find any provision, section, or subsection of this Compact to be
invalid, the remaining provisions, sections, and subsections of this Compact shall remain
in full force and effect, unless the invalidated provision, section or subsection is material.

B. Each party hereto agrees to defend the validity of this Compact and the legislation in
which it is embodied. This Compact shall constitute a binding agreement between the
parties and shall survive any repeal or amendment of the State-Tribal Gaming Act.

C. The parties shall cooperate in seeking approval of this Compact from an appropriate
federal agency as a tribal-state compact under the Indian Gaming Regulatory Act.

D. The standards for electronic bonanza-style bingo games, electronic instant bingo
games and electronic amusement games established in the State-Tribal Gaming Act as
enacted in 2004, and, at the election of the tribe, any standards contained in the
Oklahoma Horseracing Commission rules issued pursuant to subsection B of Section 9
of the State-Tribal Gaming Act are hereby incorporated in this Compact and shall survive
any repeal of the State-Tribal Gaming Act, or any games authorized thereunder. In the
event that any of said standards are changed by amendment of the State-Tribal Gaming
Act, the tribe shall have the option to incorporate said changes into this Compact by
delivery of written notice of said changes to the Governor and the SCA.

Part 14. NOTICES

All notices required under this Compact shall be given by certified mail, return receipt
requested, commercial overnight courier service, or personal delivery, to the following
persons: Governor, Chair, State-Tribal Relations Committee, Attorney General

With copies to:

_______________________

_______________________
Part 15. DURATION AND NEGOTIATION

A. This Compact shall become effective upon the last date of the satisfaction of the
following requirements:
1. Due execution on behalf of the tribe, including obtaining all tribal resolutions
and completing other tribal procedures as may be necessary to render the tribes
execution effective;
2. Approval of this Compact by the Secretary of the Interior as a tribal-state
compact within the meaning of IGRA and publication in the Federal Register or
satisfaction of any other requirement of federal law; and
3. Payment of the start-up assessment provided for in subsection C of Part 11 of
this Compact.

B. This Compact shall have a term which will expire on January 1, 2020, and at that
time, if organization licensees or others are authorized to conduct electronic gaming in
any form other than pari-mutuel wagering on live horse racing pursuant to any
governmental action of the state or court order following the effective date of this
Compact, the Compact shall automatically renew for successive additional fifteen-year
terms; provided that, within one hundred eighty (180) days of the expiration of this
Compact or any renewal thereof, either the tribe or the state, acting through its Governor,
may request to renegotiate the terms of subsections A and E of Part 11 of this Compact.

C. This Compact shall remain in full force and effect until the sooner of expiration of the
term or until the Compact is terminated by mutual consent of the parties.

D. This Compact may be terminated by state upon thirty (30) days prior written notice to
the tribe in the event of either (1) a material breach by the tribe of the terms of a tobacco
Compact with the state as evidenced by a final determination of material breach from the
dispute resolution forum agreed upon therein, including exhaustion of all available
appellate remedies therefrom, or (2) the tribes failure to comply with the provisions of
Section 346 et seq. of Title 68 of the Oklahoma statutes, provided that the tribe may cure
either default within the thirty-day notice period, or within such additional period as may
be reasonably required to cure the default, in order to preserve continuation of this
Compact. The state hereby agrees that this subsection is severable from this Compact
and shall automatically be severed from this Compact in the event that the United States
Department of the Interior determines that these provisions exceed the states authority
under IGRA.

Part 16. AUTHORITY TO EXECUTE

This Compact, as an enactment of the people of Oklahoma, is deemed approved by the

State of Oklahoma. No further action by the state or any state official is necessary for
this Compact to take effect upon approval by the Secretary of the Interior and publication
in the Federal Register. The undersigned tribal official(s) represents that he or she is duly
authorized and has the authority to execute this Compact on behalf of the tribe for whom
he or she is signing.

APPROVED:

____________________________ Date _________________

SECTION 23. This act shall become effective upon approval by the people.

SECTION 24. The Ballot Title for the proposed act shall be in the following form:
BALLOT TITLE, Legislative Referendum No. 1252 State Question No. 712

THE GIST OF THE PROPOSITION IS AS FOLLOWS:

This measure creates the State-Tribal Gaming Act. It would allow some types of gaming
machines at some horse race tracks in this state. The Oklahoma Horse Racing
Commission would oversee the new types of gaming machines. It would require that a
portion of the money wagered on such gaming be paid to the state. Some of the money
would go to purses for horse races. Some of the money would go to the horse race tracks.
The measure also provides a model compact which Indian tribes may enter into and then
operate such gaming machines on Indian lands. The model compact provides regulatory
controls for the gaming authorized by the compact. The Office of State Finance would
have the authority to oversee this gaming by the tribes. The money wagered on such
gaming would go to horse race tracks, purses for horse races, and the tribes. The states
portion of the money from the gaming authorized by this act would go for treatment of
compulsive gambling disorders, to the Education Reform Revolving Fund and for college
scholarships.
SHALL THIS ACT BE APPROVED BY THE PEOPLE?
YES, FOR THE ACT
NO, AGAINST THE ACT

SECTION 25. The President Pro Tempore of the Senate shall, immediately after the
passage of this order for legislative referendum, prepare and file in accordance with
Section 3 of Article V of the Oklahoma Constitution, one copy of this order for
legislative referendum, set forth in Sections 2 through 24 of this act, including the Ballot
Title set forth in SECTION 24, with the Secretary of State and one copy with the
Attorney General.